On Friday 9 January 2026, the Fédération des Industries Luxembourgeoises (FEDIL) issued a statement welcoming the conclusion of the free trade agreement between the European Union and Mercosur, describing it as an important step for European and Luxembourg competitiveness.
According to FEDIL, the agreement represents a significant advance for the European economy and demonstrates the European Union’s ability to act coherently on the international stage while defending open trade based on clear rules. The federation added that the deal confirms the EU’s capacity to play a strategic role in an increasingly fragmented geo-economic environment marked by geopolitical tensions, state subsidies, supply-chain vulnerabilities and intensifying industrial competition.
In this context, FEDIL stressed that Luxembourg companies, which are strongly internationally oriented, have an increasing need for stable, predictable and diversified access to global markets. Against the backdrop of the growing influence of the United States and China, the EU-Mercosur agreement was described as an important signal in favour of open trade grounded in common rules and balanced partnerships.
FEDIL also highlighted that the agreement opens access to one of the world’s largest markets, encompassing more than 750 million consumers. It reduces trade barriers and improves access to strategic raw materials, particularly those essential for the energy and digital transitions, thereby creating concrete opportunities for growth, investment and competitiveness for European and Luxembourg industry.
However, the federation underlined that the EU-Mercosur agreement should be seen as only a first step. FEDIL called on the European Union to continue strengthening long-term opportunities for industry by diversifying trade partnerships and developing new agreements that enhance the economic resilience and prosperity of both Europe and Luxembourg.
