The European Union (EU) and Mercosur signed a long-awaited free trade agreement today, ending more than 25 years of negotiations to strengthen trade ties, despite growing protectionism and trade tensions around the world.
The agreement represents a major geopolitical victory for the EU in the face of rising US tariffs and expands Brussels's foothold in South America, which is increasingly contested by Washington and Beijing.
European Commission President Ursula von der Leyen said the "geopolitical significance of this agreement cannot be overstated" amid renewed skepticism about the benefits of free trade.
"We choose fair trade over tariffs. We choose productive long-term partnerships over isolation," she said at a ceremony attended by the presidents of Mercosur members Argentina, Uruguay and Paraguay, as well as Brazil's foreign minister.
Von der Leyen added that the two blocs will join forces like never before, "because we believe this is the best way for our people and our countries to flourish."
The EU-Mercosur agreement brings together a market of more than 700 million consumers, which accounts for a quarter of global gross domestic product (GDP).
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