The European Union and South American bloc Mercosur are set to sign a landmark free-trade agreement on Saturday, concluding negotiations that began more than 25 years ago and creating one of the world’s largest free-trade areas.
The deal comes as countries seek new trade partners amid growing protectionism and tariff threats from U.S. President Donald Trump. Together, the EU and Mercosur account for roughly 30 percent of global GDP and more than 700 million consumers.
The agreement removes tariffs on over 90 percent of bilateral trade, boosting European exports such as cars, wine and cheese, while easing access to Europe for South American agricultural products including beef, poultry and soybeans.
The treaty was agreed in Brussels last week despite opposition from European farmers, who fear an influx of cheaper imports. Some South American analysts also warn of job losses, particularly in Argentina’s automotive sector.
