MONTEVIDEO, Uruguay — The European Union and the Mercosur trade bloc have agreed to terms for a long-anticipated free trade deal, European Commission President Ursula von der Leyen announced in Montevideo on Friday.
The EU-Mercosur deal aims to create one of the largest free trade zones in the world, covering over 700 million people and nearly 25% of global GDP.
Much like the U.S.-Mexico-Canada free trade agreement, its goal is to reduce tariffs and trade barriers, making it easier for businesses on both sides to export goods.
The deal is not the end of the story for the Europeans. France leads a group of member countries who still have objections to the pact, and all 27 member countries must endorse it for the agreement to enter force.
