European Union and Mercosur bloc of South American nations sign landmark free trade agreement

The European Union and the Mercosur bloc of South American countries have formally signed a long-sought landmark free trade agreement. The deal inked on Saturday caps more than a quarter-century of torturous negotiations to strengthen commercial ties in the face of rising protectionism and trade tensions around the world. The signing ceremony in Paraguay’s humid capital of Asuncion marks a major geopolitical victory for the EU in an age of American tariffs and surging Chinese exports. It expands the bloc’s foothold in a resource-rich region increasingly contested by Washington and Beijing. The agreement also sends a message that South America cultivates diverse trade and diplomatic relations even as U.S. President Donald Trump declares dominance in the Western Hemisphere.