European Union, Mercosur Trade Bloc Announce New Free Trade Deal

‘This is a win-win agreement,’ says European Commission president Ursula von der Leyen.

European Commission president Ursula von der Leyen arrives for a meeting in Montevideo, Uruguay, on Dec. 5, 2024. Eitan Abramovich/AFP via Getty Images

After 25 years of stop-and-start negotiations, the European Union and Mercosur—a trade bloc of Latin American nations—have agreed to a free trade agreement.

The EU–Mercosur trade pact will now create one of the largest free trade zones in the world, covering more than 700 million people and about a quarter of global GDP.