The European Union (EU) and the common market bloc of several South American countries, Mercosur, signed a free trade agreement on Saturday in Paraguay, LETA reports citing DPA/AP.
The agreement creates one of the largest free trade areas in the world, covering more than 700 million people and with a combined economic volume of about 22 trillion US dollars.
"We choose fair trade over tariffs. We choose productive long-term partnership over isolation," said European Commission President Ursula von der Leyen at the signing ceremony.
"We will join forces like never before because we believe this is the best way to ensure the prosperity of our peoples and countries," Leyen said.
Most EU countries voted on January 9 to sign the free trade agreement between the bloc and Mercosur. The agreement also requires support from the European Parliament to come into effect.
Poland, France, Ireland, Austria, and Hungary voted against it.
The agreement, which has been in the works for 25 years, is concluded between the EU and Brazil, Argentina, Uruguay, and Paraguay. It will create one of the largest free trade areas in the world and allow the EU to increase exports of cars, machinery, and alcoholic beverages to Latin America.
Negotiations, which began in 1999, have repeatedly stalled, partly due to concerns from European farmers who warned that they would have to comply with different standards.
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