EU, Mercosur bloc sign trade agreement in Paraguay

The European Union and the South American Mercosur bloc signed the controversial trade agreement on Saturday in Paraguay after 25 years of negotiations.

European Commission President Ursula von der Leyen and European Council President Antonio Costa participated in the signing ceremony of the trade agreement with the South American Mercosur bloc, which includes Argentina, Brazil, Paraguay, and Uruguay.

"Today in this room, we are signing an important document. It is basically the symbol of a new partnership between Mercosur and Europe," von der Leyen said while addressing the signing officials.

Recalling that the deal survived changes of government and many meetings over the past years, she reaffirmed that they are "creating the largest free trade zone in the world."

"This agreement sends a very strong message to the world. It reflects a clear and deliberate choice. We choose fair trade over tariffs. We choose a productive, long-term partnership over isolation, and above all, we intend to deliver real and tangible benefits to our people and our businesses," von der Leyen further underscored.

The agreement was approved by EU member states last Friday, after more than 20 years of negotiations and delays in December caused by farmer protests and opposition from countries such as France, Ireland, Hungary and Poland.

Under the deal, tariffs on agricultural products, including beef, poultry, dairy, sugar and ethanol, will be reduced for Mercosur countries, while European industries will gain increased access to South American markets.