European Union’s long-awaited trade agreement with the Mercosur has provisionally come into force, creating one of the world’s largest free trade zones.
The deal, finalised earlier this year after more than two decades of talks, covers over 700 million people and a large share of the global economy.
Under the agreement, tariffs on more than 90 percent of goods traded between the two sides will be reduced or removed, opening new markets for businesses.
European Commission President Ursula von der Leyen said the move will bring clear economic benefits, including better access for European companies.
The deal is expected to boost exports of European products such as cars, wine and cheese, while allowing more agricultural goods from South America to enter European markets.
However, the agreement has faced criticism in some EU countries, especially from farmers concerned about competition from cheaper imports.
Despite opposition, a majority of EU members backed the deal as part of efforts to strengthen trade ties and reduce dependence on other major economies.
The agreement is being applied provisionally while a legal review by the EU’s top court is still pending.
Officials said the deal marks a major step in expanding global trade partnerships.
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