The European Union and South American bloc Mercosur have signed a long-delayed free trade agreement in Asuncion, Paraguay, creating one of the world’s largest trade zones.
The deal will cut more than 90 percent of tariffs between the EU and Mercosur countries including Argentina, Brazil, Paraguay, and Uruguay. However, some reductions will be phased in over 10 to 15 years.
European Commission President Ursula von der Leyen called the agreement a geopolitical victory, saying it will boost exports, growth, and jobs for both regions.
The deal covers all 27 EU member states, though Austria, France, Hungary, Ireland, and Poland opposed it. It now requires approval from the European Parliament and ratification by the Mercosur countries.
