With 2026 just underway, today Europe has sent a strong signal that we are serious about our priorities. On our commitment to Europe's competitiveness and creating growth and opportunities for businesses and citizens. On our commitment to diversify our trade and reduce our dependencies. And in the face of an increasingly hostile and transactional world, a clear commitment to strengthen our international partnerships.
Just three weeks ago in the context of the European Council, we assured our Mercosur partners that we would travel to see them and together we would make history. In that time, we have worked hard with our Member States and our stakeholders to deliver. Today, that hard work has paid off and I welcome the decision by the Council so we can move forward. I greatly look forward to signing this landmark deal soon under the Paraguayan Presidency, which has just begun, following strong leadership and good cooperation from President Lula.
25 years in the making - we have delivered a substantive and mutually beneficial deal, which will increase prosperity and create incredible opportunities. This deal marks a new era of trade and cooperation with our Mercosur partners. But it is also a testament to the endurance and strength of our relationship with Latin America, and one that will bring us closer together.
With the Mercosur agreement, we are creating a market of 700 million people - the largest free trade zone in the world. Our message to the world is this: Partnership creates prosperity and openness drives progress.
Europe's perseverance and dedication to deliver on our priorities and uphold our commitments is clear. At a time when trade and dependencies are being weaponised and the dangerous, transactional nature of the reality we live in becomes increasingly stark, this historic trade deal is further proof that Europe charts its own course and stands as a reliable partner.
Let me touch briefly on what this deal will do for Europe because this agreement is good for our citizens, our businesses and every Member State. Today, 60,000 European companies export to Mercosur, half of these are small and medium-sized enterprises that will benefit from lower tariffs, will save around €4 billion every year in export duties and will benefit from simpler customs procedures. Crucially, it will also give our companies better access to critical raw materials.
We have heard the concerns of our farmers and our agricultural sector and we have acted on them. This agreement contains robust safeguards to protect their livelihoods. We are also stepping up our actions in relation to import controls, because rules must be respected, also by importers.
At the same time, we will harness the opportunities this agreement offers for our farmers. For example, this agreement includes 350 European geographical indications which is more than in any other EU trade deal.
This is a win-win agreement. As one of Mercosur's main trade and investment partners, this deal will create more business opportunities, and it will drive European investment in strategic sectors. EU exports to Mercosur are expected to grow by almost €50 billion by 2040 and Mercosur exports will in turn grow by up to €9 billion.
Finally, this is more than a trade deal based on equal partnership. We are creating a platform for political dialogue, which will reinforce the relationship between Europe and Mercosur and enable us to better align with our international partners.
I look forward to travelling to Paraguay so we can start this new era together.
