In Asunción, leaders from the European Union and Mercosur gathered to sign a partnership agreement aimed at strengthening ties between Europe and South America. The ceremony took place in the same location where Mercosur’s founding treaty was originally signed.
During the event, European Commission President Ursula von der Leyen addressed attendees, which included heads of state from Argentina, Brazil, Uruguay, Paraguay, and other dignitaries. Von der Leyen emphasized the significance of the agreement for both regions.
“It is an honour to be here with you in beautiful Asunción, in the heart of Latin America, and in the very room where Mercosur’s founding treaty was signed. This place carries history, it reminds us of a moment when nations in Latin America chose cooperation over division, rejected rivalry and reaffirmed democracy, and brought peoples together across borders and rivers. As a European, I recognise in that choice something familiar, and I deeply respect the ambition and courage it required. So my first message is a simple one: thank you for bringing us together and hosting us in this historic setting. Aguyje, Paraguay.”
Von der Leyen highlighted that the new deal has been negotiated over 25 years through numerous meetings and changes of government on both sides. She noted its scale: “We are creating the largest free trade zone in the world, a market worth almost 20% of global GDP. Delivering untold opportunities for our 700 million citizens. This agreement sends a strong signal to the world. It reflects a clear and deliberate choice. We choose fair trade over tariffs, we choose a productive, long-term partnership, and above all, we intend to deliver real and tangible benefits to our peoples and companies.”
She outlined three main points regarding the agreement’s impact:
First are its economic effects; Europe is already Mercosur’s second-largest trading partner as well as its largest foreign investor. The deal will remove tariffs and barriers to trade while opening public procurement markets on both sides.
“Already today, Europe is the second largest trading partner of Mercosur and Europe is the biggest foreign investor in the region. This deal will remove tariffs and other barriers to trade, it will open up public procurement. It will provide a clear rules-based framework to encourage investment and trade to flow. And this will greatly benefit companies on both sides, this includes the 30,000 European SMEs that are already exporting to this great region. And increased exports will create jobs, both here and in Europe.”
Second is support for environmental goals: “There is a strong chapter on trade and sustainable development. We are committing to help each other to make the transition to climate neutrality. Europe will gain improved access to the raw materials we need for our transition, and European investment will support the Mercosur countries in their transition.” Von der Leyen stressed mutual support between partners with complementary strengths.
Thirdly she discussed geopolitical importance: “The geopolitical importance of this agreement cannot be overstated. We are creating a platform to work on a range of global issues… We will join forces like never before… And when our two regions speak with one voice on global issues, the world will listen.”
Von der Leyen referenced Paraguayan poet Augusto Roa Bastos as an example of deep cultural ties between Europe and South America.
“I have been reading about the great Paraguayan poet Augusto Roa Bastos… His story is the story of so many people… People who travelled across the Ocean… The ties between Mercosur and Europe run deep.”
She concluded by expressing gratitude for hospitality received during negotiations: “So let me thank you once again for your hospitality. And long live our friendship Europe-Mercosur. Muchas gracias.”