{"id":134415,"date":"2026-01-13T06:04:27","date_gmt":"2026-01-13T05:04:27","guid":{"rendered":"https:\/\/thediplomatinspain.com\/?p=134415"},"modified":"2026-01-13T17:38:02","modified_gmt":"2026-01-13T16:38:02","slug":"spain-celebrates-upcoming-eu-mercosur-agreement-signing-in-paraguay-while-others-build-walls","status":"publish","type":"post","link":"https:\/\/thediplomatinspain.com\/en\/2026\/01\/13\/spain-celebrates-upcoming-eu-mercosur-agreement-signing-in-paraguay-while-others-build-walls\/","title":{"rendered":"Spain celebrates upcoming EU-Mercosur agreement signing in Paraguay \u201cwhile others build walls\u201d"},"content":{"rendered":"
Ane Barcos\/Eduardo Gonz\u00e1lez<\/strong><\/h6>\n

Paraguay will host the signing of the free trade agreement between the European Union and Mercosur next Saturday, January 17. Negotiations for over 25 years took place after the EU reached a consensus last Friday. Prime Minister Pedro S\u00e1nchez celebrated the upcoming signing on Monday, stating that \u201cwhile others build walls or are absorbed in their own economies,\u201d and Foreign Minister Jos\u00e9 Manuel Albares described it as \u201ca great historic step.\u201d<\/strong><\/h4>\n

The signing of the agreement will take place in Asunci\u00f3n on Saturday, January 17, with the participation of the foreign ministers of the Mercosur member states, as well as the President of the European Commission, Ursula von der Leyen, and the President of the European Council, Ant\u00f3nio Costa.<\/p>\n

The agreement between the Mercosur bloc, composed of Argentina, Brazil, Paraguay, and Uruguay, and the European Union was reached in December 2024. However, it wasn’t until January 2026 that the EU member states gave it the green light.<\/p>\n

Last Friday, January 9, the European Union ambassadors adopted the decision authorizing the signing of the trade agreement, despite opposition from France, Poland, Ireland, Austria, and Hungary, who voted against it. Belgium abstained, while the rest of the countries gave their support.<\/p>\n

Italy, which had been one of the countries that blocked the vote in December 2025 due to concerns about the agreement’s impact on its agriculture, changed its position after the European Commission proposed a \u20ac45 billion modernization fund.<\/p>\n

The agreement between the European Union and Mercosur will open access to a market of 780 million people, representing approximately 25% of global GDP. The elimination or reduction of up to 90% of bilateral tariffs aims to foster increased trade and investment between the two blocs, with a special focus on small and medium-sized enterprises (SMEs).<\/p>\n

Furthermore, the European Union has indicated that the agreement aims to promote shared values \u200b\u200band sustainable development, with an emphasis on strengthening labor rights, combating climate change, protecting the environment, and promoting responsible business practices. Although the signing is scheduled for Saturday, the agreement still needs approval from the European Parliament before it can be formalized.<\/p>\n

S\u00e1nchez and Albares<\/strong><\/h5>\n

Speaking to the press after meeting with the Prime Minister of Greece, Kyriakos Mitsotakis, at the Moncloa Complex, S\u00e1nchez celebrated on Monday the consensus reached last Friday and the upcoming signing of the trade agreement between Europe and Mercosur.<\/p>\n

\u201cWhile others build walls or become absorbed in their own economies, I believe that the European Union-Mercosur agreement opens a path to creating a free trade area that will undoubtedly be the largest in the world and, therefore, the one that will guarantee us greater cooperation, greater trust, and greater shared prosperity with a region as important to European interests as Latin America and the Caribbean.\u201d<\/p>\n

\u201cIt will be a key agreement in economic terms, with estimated savings, according to studies, of more than 4 billion euros annually in tariffs for our companies, and essential from the current geopolitical perspective, advocating for an international order based on rules, norms, and predictability that allow us to build shared prosperity,\u201d he added.<\/p>\n

For his part, Albares asked \u201call Spaniards\u201d to be \u201caware of the great historical step we have taken, especially at this time,\u201d because it will allow the creation of \u201cthe largest free trade area, encompassing 700 million people,\u201d and will represent \u201ca \u201cThere will be overall gains for both continents, but due to the size and reduction of the market, the gains will be around 70% for Europeans.\u201d<\/p>\n

\u201cLet\u2019s not forget something else: this is a trade agreement, but above all, it is also the political commitment we are offering to those Latin American countries,\u201d the \u201cmost Euro-compatible region, closest in values \u200b\u200bto Europe,\u201d the minister continued, assuring that the Spanish government \u201cwill support any sector that may be\u201d affected by the agreement.<\/p>\n","protected":false},"excerpt":{"rendered":"

Paraguay will host the signing of the free trade agreement between the European Union and Mercosur next Saturday, January 17. 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