The European Union and the Latin American trade bloc Mercosur are due to sign a landmark free trade deal on Saturday, which was 25 years in the making.
European Commission President Ursula von der Leyen and European Council President Antonio Costa will visit Paraguay’s capital Asunción for the signing ceremony in the hope of finally turning the page on the trans-Atlantic trade saga.
The deal “will bring real benefits for European citizens and businesses, boost the EU’s sovereignty and strategic autonomy, and shape the global economy in line with our shared values” Costa said ahead of his trip.
“More than 700 million people will benefit from the EU-Mercosur Agreement,” Costa said.
The EU managed to push the deal over the line despite opposition from some countries in the bloc, in an effort to diversify its trade ties as relations with the United States and China grow strained.
“Europe is open for business, and building bridges towards shared prosperity with our global partners,” Costa said.
The trade deal between the EU’s 27 member countries and Mercosur countries Brazil, Argentina, Uruguay and Paraguay is intended to boost trade between the economic blocs.
The negotiations, which started in 1999, repeatedly came to a standstill, including over concerns from European farmers who warned they would have to comply with differing standards.
The signing ceremony, which was initially scheduled for December, was delayed as the support for the deal among EU countries fell short of the necessary majority.
Last-minute concessions by the European Commission earlier this month prompted crucial backing from Italy, giving the deal the required support.
The European Parliament still has to approve the agreement before it can enter into force.
The Mercosur logo can be seen on the sidelines of the summit of the economic alliance. Santiago Mazzarovich/dpa