The long-awaited agreement comes amid the sweeping use of tariffs and trade threats by US President Donald Trump's administration, which has sent countries scrambling for new partnerships. Together, the EU and Mercosur account for 30 percent of global GDP and more than 700 million consumers. They fear the deal will lead to an influx of cheaper South American products due to production standards they consider less stringent. - 'A powerful message' -European Commission President Ursula von der Leyen, European Council head Antonio Costa and EU Trade Commissioner Maros Sefcovic will attend the signing ceremony in Asuncion. On Friday, Trump threatened to slap trade tariffs on countries that do not support his plans to take over Greenland, a territory of NATO ally Denmark.

Source: Bangladesh Sangbad Sangstha January 17, 2026 08:07 UTC