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Brazil Signs Landmark EU-Mercosur Trade Deal Amid Tensions

1/17/2026

Summary

Story summary

Brazilian President Luiz Inácio Lula da Silva announced the signing of a European Union–Mercosur agreement, ending 25 years of negotiations.
The agreement will be signed in Paraguay, but Lula will not attend, delegating Foreign Minister Mauro Vieira.
Lula's absence has raised diplomatic tensions within Mercosur, as Argentina, Paraguay, and Uruguay will be represented.
Lula described the deal as creating one of the world's largest free trade areas and boosting investment.

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Story summary

Brazilian President Luiz Inácio Lula da Silva announced the signing of a European Union–Mercosur agreement, ending 25 years of negotiations.
The agreement will be signed in Paraguay, but Lula will not attend, delegating Foreign Minister Mauro Vieira.
Lula's absence has raised diplomatic tensions within Mercosur, as Argentina, Paraguay, and Uruguay will be represented.
Lula described the deal as creating one of the world's largest free trade areas and boosting investment.