European Union member states have backed the biggest ever free trade agreement with a group of Latin American countries, ending 25 years of negotiations but stoking further tensions with farmers and environmentalists around the bloc. The contentious Mercosur deal with Argentina, Brazil, Paraguay and Uruguay prompted immediate protests in Poland, France, Greece and Belgium, with farmers blocking key roads in Paris, Brussels and Warsaw. Von der Leyen said the EU had listened to farmers, describing the deal as a “win-win agreement” yielding a €50bn opportunity to EU exporters by 2040 and €9bn growth to Mercosur countries. Latin America is a region of intense competition for influence between western countries and China. Failing to sign the EU-Mercosur free trade agreement risked pushing Latin American economies closer to Beijing’s orbit.

Source: The Guardian January 09, 2026 21:42 UTC