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Leaders pose for a group photo during a meeting to sign a free trade deal between the European Union and Mercosur in Asuncion, Paraguay, Saturday, Jan. 17, 2026.

Video. EU seals contentious trade deal with Mercosur countries

Updated: 17/01/2026 - 18:51 GMT+1

After 25 years of talks, the EU signed the EU-Mercosur trade deal on Saturday, creating a 700 million-person free-trade area. Ratification is still pending, however, with the European Parliament set for a heated debate.

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