The European Union has moved forward with a major trade deal with the Mercosur group in South America, and it officially starts on Friday.
This agreement has been in the works for over 25 years. It creates one of the largest free-trade zones in the world.
From day one, more than 90% of trade between the two sides will have lower or no tariffs. That means goods can move more easily and cheaply between them.
EU Commission chief Ursula von der Leyen said a lot of effort went into getting the deal done, and now the focus is on making sure businesses and people benefit right away.
To mark the launch, EU leaders are holding online talks with Mercosur countries like Argentina and Brazil.
Together, the EU and Mercosur represent about 30% of the global economy and a market of over 700 million people.
The deal is expected to help European exports like cars, wine, and cheese. At the same time, South American products like beef, poultry, sugar, rice, honey, and soybeans will have easier access to European markets.
But not everyone is happy.
France has strongly opposed the deal, worried that its farmers could suffer from cheaper imports, especially from Brazil. This disagreement even caused tension between France and Germany.
There’s also a legal question still hanging over the deal. The European Parliament sent it to the EU’s top court instead of fully approving it, so a final ruling is still pending.
Even with that uncertainty, the EU is pushing ahead. It’s trying to expand trade and reduce reliance on big powers like the United States and China, while also working on new deals with countries like India, Australia, and Indonesia.
