The pact will create one of the largest trade areas worldwide, linking all 27 EU states with Mercosur members Argentina, Brazil, Paraguay and Uruguay. Officials say the agreement is a strategic move to deepen economic ties and diversify trade amid global tariff tensions.

Credits: envato elements;

The agreement still requires ratification by the European Parliament and Mercosur legislatures before entering into force. Negotiators backed the deal despite opposition from some EU agricultural sectors concerned about competition and safeguards.