South American and European authorities used the occasion of the signing ceremony of the free trade agreement between Mercosur and the European Union, held on Saturday (Jan. 17) in Paraguay, to defend multilateralism and free trade as engines of economic development.

In his speech, the President of the European Council, António Costa, said that the signing of the treaty, negotiated over the past 26 years, reaffirms the belief of the member states of both regional blocs in fair trade and multilateralism.

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“With this agreement, we send a clear message to the world in defense of rules-based free trade and [in favor of] multilateralism and international law as the basis of relations between countries and regions,” said the president of the council.

Costa considered that, although it took a long time, the treaty “arrives at an opportune moment […] because this agreement is a bet on openness, exchange, and cooperation, in the face of [threats of] isolation and the use of trade as a geopolitical weapon. […] With it, we do not aspire to create spheres of influence, but rather spheres of shared prosperity, based on trust, cooperation, and respect for the sovereignty of our democracies. We do not intend to dominate or impose, but rather to promote and strengthen the links between our citizens and our companies in order to create wealth sustainably, while protecting the environment and environmental rights.”

The President of the European Commission, Ursula von der Leyen, reinforced Costa’s assessment, saying that the act has the potential to connect continents and create the world’s largest free trade area, with a market of 700 million people.

“We chose fair trade instead of tariffs. We chose long-term partnerships instead of isolation,” said Ursula von der Leyen.

Host of the event, Paraguayan President Santiago Peña highlighted the diplomatic pragmatism necessary to overcome 26 years of deadlock.

“We are facing a truly historic day, long awaited by our peoples, [capable of] uniting two of the most important global markets and demonstrating that the path of dialogue, cooperation, and fraternity is the only way,” Peña emphasized.

He highlighted the commitment of Brazilian President Luiz Inácio Lula da Silva – who, due to scheduling conflicts, could not travel to Asunción – and Ursula von der Leyen to the success of the negotiations. “Without President Lula, perhaps we would not have reached this day. He was one of the key figures responsible for this process.”

The President of Argentina, Javier Milei, emphasized that the agreement constitutes a starting point for the exploration of new commercial opportunities and a basis for greater regional integration, grounded in free trade. According to the Argentine president, promoting macroeconomic stability and ensuring legal predictability are indispensable conditions for prosperity and social justice.

The Uruguayan president, Yamandú Orsi, described the agreement as a “strategic partnership,” capable of improving the lives of the populations of the signatory countries by creating real opportunities. According to him, for Uruguay, it is an “indispensable condition for development,” as well as a platform to confront “threats that do not recognize borders, such as drug trafficking and other transnational illicit practices.”

Representing Brazil, the Minister of Foreign Affairs, Mauro Vieira, reiterated Lula’s statement, according to which the trade agreement between Mercosur and the European Union is proof of the strength of the democratic world and a demonstration of multilateralism. “The agreement will provide tangible gains, more jobs and investment, greater productive integration, expanded access to quality goods and services, technological innovation, and economic growth with social inclusion […] in a world plagued by unpredictability, protectionism, and coercion,” Vieira declared.

The text of the agreement still needs to be submitted for ratification by the European Parliament and the national congresses of each Mercosur member country. Its entry into force, including the trade provisions, depends on this approval.