The European Union and the South American economic bloc, Mercosur, on Friday agreed a trade deal after two decades of negotiations.
The bloc, Mercosur, is comprised of four nations: Argentina, Brazil, Paraguay and Uruguay.
Negotiations had begun in 1999 but hastened following the election of Donald Trump as President of the United States in 2016. Talks between the EU and the US over a possible deal broke down.
Reuters reports that the EU is Mercosur’s biggest trade and investment partner and its second largest for trade in goods.
The EU wants more access for its firms that deal in industrial products and cars. Additionally, it wants them allowed to compete for public contracts in Mercosur countries.
Mercosur wants to boost its exports of beef, sugar, poultry and other farm products.
EU Commission chief Jean Claude Juncker said that the EU was sending a strong signal that it stands for rules-based trade.
Brazil President Jair Bolsonaro noted that the agreement is an historic one and one of the most important trade deals of all time.
Argentina’s Secretary of International Relations Horacio Reyser hailed the agreement as a measure that would improve his country’s GDP, create jobs and attract investment.
