EU and South American nations sign trade pact

The European Union and the Mercosur bloc of South American countries formally signed a long-sought landmark free trade agreement on Saturday, capping more than a quarter-century of tortuous negotiations to strengthen commercial ties in the face of rising protectionism and trade tensions around the world.

- BY NAYARA BATSCHKE

The signing ceremony in Paraguay’s capital of Asunción marks a major geopolitical victory for the EU in an age of American tariffs and surging Chinese exports, expanding the bloc’s foothold in a resource-rich region increasingly contested by Washington and Beijing.

It also sends a message that South America keeps diverse trade and diplomatic relations even as President Trump declares dominance in the Western Hemisphere.

European Commission President Ursula von der Leyen, who head’s the EU's executive branch, said that “the geopolitical importance of this agreement cannot be overstated” amid revived skepticism about the benefits of free trade. As the ceremony got underway, Trump announced 10% tariffs on eight European nations over their opposition to an American takeover of Greenland.