EU and Mercosur Sign Free Trade Agreement

European officials and officials from the South American trade association Mercosur signed a free trade agreement in Paraguay, the largest trade agreement in EU history after 25 years of negotiations.

The agreement aims to create one of the world's largest trade zones, covering approximately 700 million consumers. Ursula von der Leyen stated that the agreement is more than just a trade agreement, marking a geopolitical commitment between the two sides of the Atlantic, based on shared values.

The agreement is expected to increase EU exports to Mercosur by up to 50 billion euros, while exports from Mercosur countries could increase by up to 9 billion euros. The agreement must be approved by the European Parliament and the parliaments of the Mercosur member states.

Mercosur members include Argentina, Brazil, Paraguay, and Uruguay.