• The EU and Mercosur finalize a major trade agreement after 25 years of negotiations.
• The deal eliminates tariffs on over 90% of bilateral trade, benefiting industries from both regions.
• Controversies arise over potential job losses and market impacts in the agricultural sector.
• Key figures in politics, including Ursula von der Leyen, stressed the importance of this partnership.
• The agreement aims to create one of the world's largest free trade areas amidst global protectionism.

The European Union and the South American trade bloc Mercosur signed a long-awaited trade agreement on Saturday in Paraguay, marking the culmination of 25 years of negotiations. The agreement aims to eliminate tariffs on over 90% of bilateral trade, aiming to benefit major exports from both regions. European exports such as cars, wine, and cheese will gain an advantage in Mercosur markets, while countries in South America will see enhanced access for their beef, poultry, and agricultural products into Europe, according to scmp and thelocal.

The historic signing took place amid a backdrop of increasing protectionism, particularly influenced by the tariff policies of the United States under President Trump. European Commission President Ursula von der Leyen remarked that the agreement sends a "very strong message" of choosing fair trade over isolation and serves as a commitment to productive partnerships. She further emphasized that this deal symbolizes progress and potential benefits for both the EU and Mercosur citizens, according to aa.

Despite the optimism surrounding the agreement, it faces criticism, especially from European farmers concerned about competition from South American products perceived to have less stringent production standards. In Argentina, for instance, it is estimated that job losses could reach 200,000 due to the dismantling of local industries, highlighting a significant potential impact on the job market, according to scmp and thelocal.

The participation of prominent leaders at the signing ceremony signals the political dimension of the agreement, which is expected to enhance cooperation beyond economic realms. Leaders from Argentina, Brazil, Paraguay, and Uruguay were noted for their roles in advancing the negotiations, despite the absence of the Brazilian President Luiz Inacio Lula da Silva, who was pivotal in driving talks forward, according to scmp, thelocal, and aa.