The European Union and South American trade bloc Mercosur have agreed on a vast trade deal to end 20 years of talks over one of the world’s largest regional commercial accords.
The agreement comes after two decades of often tough EU negotiations with the countries of Mercosur- Argentina, Brazil, Paraguay and Uruguay.
The deal aims to cut or remove trade tariffs, making imported products cheaper for consumers while also boosting exports for companies on both sides.
EU Commission chief Jean-Claude Juncker said it was the EU’s biggest deal till date. Brazil also welcomed a “historic” agreement while Argentina called the deal “unprecedented”.
The announcement of the deal, which must be approved by the 28 EU member states, comes as leaders of the world’s most powerful economies gather in Osaka, Japan, for a G20 summit.