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When the European Union launched trade negotiations with the Mercosur bloc in South America in 1999, the world was filled with hope. The euro had just emerged in global markets; Poland, Hungary, and the Czech Republic had emerged from behind the Iron Curtain to join NATO in a historic post-Cold War shift; and a new wave of democratic transformation was sweeping across several continents.
However, after more than a quarter of a century, the world today appears more tumultuous and perilous. Trade wars, economic and military coercion, and a growing retreat from respect for global rules are all factors undermining the liberal order that has provided decades of shared prosperity and security.
In this context, the signing of a long-awaited agreement between the European Union and Mercosur this week in Asunción, Paraguay, sends a clear message of hope: Europe will remain steadfast in its defense of a rules-based trading system and the multilateralism on which it is built, under which democracy and open trade have flourished.
At a time when the “law of the strong” seems to be reasserting itself, Europe must lead globally through its values and principles, rather than through brute force. Cooperation and integration must prevail over threats and unilateralism; this is the only path to achieving prosperity for all.
The agreement with Argentina, Brazil, Paraguay, and Uruguay embodies our commitment to these principles. As the largest trade agreement ever signed by the EU, it will create the world’s largest trading area, representing nearly a quarter of the global economy, covering a population of over 700 million, and opening up vast new markets for businesses on both sides of the Atlantic — markets that are eager for clarity and predictability amid the fog of protectionism and uncertainty stemming from constantly changing tariffs. It also positions Europe strategically within a region of immense growth potential, with EU exports to Mercosur expected to rise by around 70%, providing EU companies with nearly 4 billion euros ($4.66 billion) annually in reduced tariffs.
Unlike the agreements of the 1990s, this is a modern and comprehensive deal designed to enhance genuine economic resilience. It includes enforceable commitments in climate and labor, opens up service sectors and public procurement markets, supporting the creation of high-quality jobs in finance, communications, and technology. It also enhances Europe’s strategic autonomy by encouraging cross-border payment systems and bolstering the role of the euro in international trade and as a reserve currency.
Access to critical minerals such as lithium, cobalt, and rare earth elements will reduce Europe’s dependency on external sources and secure supply chains necessary for the green and digital transitions. With global demand for these minerals expected to rise four to sixfold by 2040, the agreement gives the EU a competitive edge in sectors ranging from electric vehicles and renewable energy to defense.
Moreover, the agreement is balanced, providing assurances to European farmers by maintaining strict food safety standards in the EU and implementing other controls, while simultaneously opening opportunities for our globally leading agri-food sector. Spanish branded products, such as olive oil and wine, are expected to benefit significantly from improved access to South American markets. The agreement also provides Europeans with better access to goods like soybeans, helping to diversify input sources.
Most importantly, the agreement reaffirms Europe’s commitment to reclaiming its voice on the global stage. While others retreat inward, we expand our network of strategic allies and negotiate new or updated trade agreements with India, Thailand, Malaysia, among others.
As the majority of EU member states unite to overcome the resistance faced by the Mercosur agreement, we have demonstrated our ability to overcome political differences both within our borders and beyond. Showcasing such determination is a fundamental step to enhancing the EU’s credibility and global influence. This same spirit will contribute to accelerating efforts to remove internal trade barriers and fully leverage our single market and a population of 450 million. Europe’s dual approach of expanding the trade agreement network and deepening internal integration is the winning formula for competitiveness.
The deal with Mercosur carries greater significance as our partnership transcends economic considerations or reciprocal logic. Europe and Latin America share deep-rooted values: democracy, the rule of law, and a commitment to multilateralism.
Spain, one of the strongest supporters of the agreement, exemplifies the benefits of strengthening ties with the region. It is the second-largest foreign investor in Brazil, helping many Spanish companies in sectors like telecommunications, infrastructure, and clean energy to become global leaders.
Thus, we view this agreement as a launching pad to deepen engagement with Latin America — engagement grounded in the historical and cultural links that unite our politically diverse regions. The agreement serves as proof that differences can be bridged through cooperation. If we want a safer and more predictable world, we need more agreements like that of the EU and Mercosur.
