The EU signs trade deal with the Mercosur group | Morning News Bulletin 18 January 2026

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The EU signs a massive trade deal with the Mercosur group of South American countries; Labor works to secure support after splitting hate speech and gun reform into separate bills; Play begins at Melbourne Park for the 2026 Australian Open.


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TRANSCRIPT
  • The E-U signs a massive trade deal with the Mercosur group of South American countries
  • Labor works to secure support after splitting hate speech and gun reform into separate bills
  • Play begins at Melbourne Park for the 2026 Australian Open
Top officials from the European Union and the South American bloc Mercosur have signed a massive free trade agreement in Paraguay.

The deal - which took 25 years of negotiations - is a major geopolitical victory for the E-U and paves the way for the its largest-ever trade accord.

The agreement is designed to lower tariffs and boost trade between the two regions.

It must now gain the consent of the European Parliament and be ratified by the legislatures of the Mercosur members: Argentina, Brazil, Paraguay and Uruguay.

Welcoming the agreement, EU President Ursula von der Leyen made some thinly veiled criticism of United States President Donald Trump's economic policies.

"We choose fair trade over tariffs. We choose long term partnership over isolation. And above all, we intend to deliver real and tangible benefits to our people and our businesses."

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United States President Donald Trump has announced new tariffs targeting several European countries, saying the measures will remain in place until a deal is reached for the "complete and total purchase of Greenland" by the US.

Writing on Truth Social on Sunday, Mr Trump said Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland would face a 10 per cent tariff on all goods sent to the U-S from 1 February, rising to 25 per cent on 1 June.

President Trump said the tariffs would remain in place until a deal on Greenland was reached, arguing the territory was critical to global security and necessary for the effectiveness of the 'Golden Dome' defence system.

Greenland sits between North America and the Arctic, giving it strategic value for missile early-warning systems and regional monitoring - something Mr Trump has previously cited while warning Russia or China could otherwise move in.

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Labor frontbencher Katy Gallagher says the government is working tirelessly to secure support for new hate speech and gun reform laws.

The Albanese government has announced it will split its legislative response to the Bondi Beach mass shooting into two separate bills after widespread criticism, and will remove new racial vilification provisions.

They need support for each bill from either the Coalition or the Greens as Labor does not have a majority in the Senate, but the Greens say they will likely support gun reform.

Senator Gallagher says she and her colleagues are calling for a united response to the hate-fuelled tragedy at Bondi.

"Over the past week, we've been working across the Senate to make sure that we are reaching as much agreement as possible. This is a moment for the Parliament to come together and to respond to those horrific terrorist and antisemitic attacks on Bondi Beach and we need to send a very strong message that we are able to respond to this terrorist attack in a responsible and mature way and the passage of the legislation that the PM has outlined today will allow that."

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Human rights activists say the death toll from Iran's nationwide protests has now passed 3,000.

The United States-based Human Rights Activists News Agency says it has verified 3090 deaths, including over 2,800 protesters.

Residents in capital Tehran and elsewhere say the Iranian government's deadly response to recent protests seems to have quieted them, while state media has continued to report more arrests.

The protests erupted on December 28th over economic hardship but then swelled into widespread demonstrations calling for the end of clerical rule in the Islamic Republic, culminating in mass violence late last week.

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In tennis, the first round of the Australian Open gets underway today in Melbourne Park.

World number one Carlos Alcaraz faces Australian Adam Walton as he begins his campaign to win the Open and become the youngest player to ever complete a career Grand Slam - a win at all four major tennis tournaments.

World number one women's player Aryna Sabalenka takes on France's Tiantsoa Rakotomanga as she seeks a third title at Melbourne Park after falling short last year.

And Venus Williams, a two-time Australian Open singles finalist, returns to the tournament for the first time since 2021 after receiving a wildcard.

The 45-year-old former world number one faces Olga Danilovic in the first round as the oldest woman to feature in the Australian Open main draw.

"It's been five years since I've been here. They flew by, and I'm super, super grateful for the opportunity from Tennis Australia and grateful for the opportunity to play in front of the fans. I've just received so much support in the tournaments leading up and walking around the city and everything. So my hope is to play my best."

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