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

ASUNCIÓN, Paraguay (AP) — The European Union and the Mercosur bloc of South American countries formally signed a long-sought landmark free trade agreement on Saturday, capping 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 Asunción marks a major geopolitical victory for the EU in an age of American tariffs and surging Chinese exports, expanding the bloc’s foothold in a resource-rich region increasingly contested by Washington and Beijing.

It also sends a message that South America keeps diverse trade and diplomatic relations even as U.S. President Donald Trump declares dominance in the Western Hemisphere.

European Commission President Ursula von der Leyen, who head's the EU's executive branch, said “the geopolitical importance of this agreement cannot be overstated” amid revived skepticism about the benefits of free trade. As the ceremony got underway, Trump announced 10% tariffs on eight European nations over their opposition to American control of Greenland.

“We choose fair trade over tariffs. We choose a productive long-term partnership over isolation,” von der Leyen declared at the ceremony attended by the presidents of Mercosur members Argentina, Uruguay and Paraguay, and by the foreign minister of the trading bloc’s biggest economy, Brazil.

“We will join forces like never before, because we believe that this is the best way to make our people and our countries prosper.”

Pushed by South America’s renowned cattle-raising countries and Europe’s industrial sectors craving new markets for cars and machines, the accord creates one of the world's largest free trade zones and makes shopping cheaper for more than 700 million consumers.

After decades of delay, the politically explosive deal still must clear one final hurdle: ratification by the European Parliament.

Powerful protectionist lobbies on both sides of the Atlantic, particularly European farmers scared of the possible dumping of cheap South American agricultural imports, have long sought to scupper the agreement. Tractor drivers clogged the streets in outrage across the continent in recent weeks and could still stall the deal's implementation.

Although the accord eliminates more than 90% tariffs on goods and services between the European and Mercosur markets, some tariffs will progressively be cut over 10-15 years and key farm products like beef will be limited by strict quotas in a bid to assuage European farmers’ fears.

Those limits, as well as safeguard measures and generous EU subsidies to cash-strapped farmers, pushed agricultural powerhouse Italy across the line earlier this month.

France, however, remains opposed to the accord, with President Emmanuel Macron worrying that farmers’ frustration with the EU could drive more voters to the country’s far right in the 2027 presidential election.

“Everything will depend on the political appetite of the European Parliament,” said João Paulo Cavalcanti, a Brazilian lawyer specializing in international trade. “That could clearly create an obstacle to approval.”

Economic Security Maros Sefcovic, left front, and Brazilian Minister of Foreign Affairs Mauro Vieira greet each other during a meeting to sign a free trade deal between the European Union and Mercosur in Asuncion, Paraguay, Saturday, Jan. 17, 2026. (AP Photo/Jorge Saenz)

Panama's President Jose Raul Mulino, from left, Bolivian President Rodrigo Paz, European Council President Antonio Costa, European Commission President Ursula von der Leyen, Paraguay's President Santiago Pena, Argentina's President Javier Milei, Uruguay's President Yamandu Orsi and Brazilian Minister of Foreign Affairs Mauro Vieira, 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. (AP Photo/Jorge Saenz)

Uruguay's President Yamandu Orsi speaks during a meeting to sign a free trade deal between the European Union and Mercosur in Asuncion, Paraguay, Saturday, Jan. 17, 2026. (AP Photo/Jorge Saenz)

Bolivian President Rodrigo Paz, left, greets Paraguay's President Santiago Pena during a meeting to sign a free trade deal between the European Union and Mercosur, in Asuncion, Paraguay, Saturday, Jan. 17, 2026. (AP Photo/Jorge Saenz)

Bolivian President Rodrigo Paz speaks during a meeting to sign a free trade deal between the European Union and Mercosur in Asuncion, Paraguay, Saturday, Jan. 17, 2026. (AP Photo/Jorge Saenz)

Meeting to sign a free trade deal between the European Union and Mercosur in Asuncion, Paraguay, Saturday, Jan. 17, 2026. (AP Photo/Jorge Saenz)

RICHMOND, Va. (AP) — Democrat Abigail Spanberger has been sworn into office as Virginia’s first female governor. Spanberger was sworn in at noon Saturday amid a cold drizzle outside the state Capitol after centuries of men holding the state’s top office.

Spanberger defeated Republican Winsome Earle-Sears to succeed Gov. Glenn Youngkin, also a Republican. It marks a new chapter as Democrats pull the levers of power in Virginia while Republican President Donald Trump sits in the White House next door.

Two other Democrats were also sworn in. Ghazala F. Hashmi, the first Muslim woman to serve in statewide office in the U.S., is the new lieutenant governor. Jay Jones is the first Black person elected attorney general in Virginia.

Spanberger, a former CIA case officer and member of Congress, defeated Republican Winsome Earle-Sears in November. Her inauguration as the state’s 75th governor is a historic first: only men have held the post since Virginia first became a commonwealth in 1776. And no woman served as a colonial governor before then.

She will be referred to with traditional formality: “Madam Governor” or, as some officials phrase it, “her excellency.”

According to “A Guide to Virginia Protocol and Traditions,” males in the official party wear morning coats and women wear dark suits for the inauguration and many, including the new governor’s husband, kept to that tradition on Saturday.

But as the first woman to serve as governor, Spanberger wore all white on Saturday, a possible tribute to the women’s suffrage movement. She wore a gold pin on her long, white coat.

Virginia Gov. Abigail Spanberger arrives inaugural ceremonies at the Capitol in Richmond Va., Saturday Jan. 17, 2026. (AP Photo/Steve Helber, Pool)

Va. Gov. Glenn Youngkin arrives with his wife before Virginia gov.-elect Abigail Spanberger inauguration at the Capitol in Richmond, Va., Saturday Jan. 17, 2026. (AP Photo/Stephanie Scarbrough)

Virginia Gov. Abigail Spanberger arrives for inaugural ceremonies at the Capitol in Richmond Va., Saturday Jan. 17, 2026. (AP Photo/Steve Helber, Pool)

Virginia Gov. Abigail Spanberger sits with her husband Adam Spanberger during inaugural ceremonies at the Capitol in Richmond Va., Saturday Jan. 17, 2026. (AP Photo/Steve Helber, Pool)

Virginia Gov. Abigail Spanberger participates in inaugural ceremonies at the Capitol in Richmond Va., Saturday Jan. 17, 2026. (AP Photo/Pool/Steve Helber)

Virginia Gov. Glenn Youngkin, center, arrives to deliver his State of the Commonwealth Address during the opening of the 2026 session of the General Assembly at the Capitol in Richmond, Va., Wednesday Jan. 14, 2026. (AP Photo/Steve Helber)

Virginia Gov. Glenn Youngkin acknowledges the applause as he delivers his State of the Commonwealth Address during the opening of the 2026 session of the General Assembly at the Capitol in Richmond, Va., Wednesday, Jan. 14, 2026. Lt. Gov. Winsome Earl-Sears, top left, House Speaker, Don Scott, D-Portsmouth, top center, and Senate President Pro ten, Louise Lucas, D-Portsmouth, join in the welcome. (AP Photo/Steve Helber)

Virginia Gov.-elect Abigail Spanberger during an interview at the Capitol Tuesday Jan. 6, 2026, in Richmond, Va. (AP Photo/Steve Helber)