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EU advances Mercosur South America trade deal despite strife

January 9, 2026

A majority of EU countries have agreed to sign a deal with the South American trading bloc, Mercosur. The pact links the EU with Argentina, Brazil, Paraguay and Uruguay for one of the world's largest free-trade zones.

https://p.dw.com/p/56bfo

The EU-Mercosur trade deal could create one of the world's largest free-trade zones, linking the European Union with Argentina, Brazil, Paraguay and Uruguay.

Supporters say it's vital for economic growth and geopolitical influence; critics warn of threats to farmers and the Amazon rain forest.

The pact faces protests and political hurdles, as EU lawmakers weigh its future at a moment of global trade fragmentation.