MONTEVIDEO — The European Union and Mercosur, the South American trade bloc, announced on Friday the completion of a landmark free trade agreement, ending 25 years of negotiations.

If ratified, the deal will create one of the world’s largest free trade zones, encompassing 780 million people and nearly a quarter of global GDP.

Proponents highlight the economic benefits, including $4.26 billion in annual savings from reduced tariffs on goods such as Argentine beef, Brazilian oranges, Italian wine, and German cars.

European Commission President Ursula von der Leyen lauded the deal as a "truly historic milestone" against rising global protectionism.

However, French President Emmanuel Macron and several EU countries oppose the agreement, citing risks to farmers and environmental concerns.

Macron emphasized that the deal remains "unacceptable" without stronger safeguards.

France has rallied Austria, Belgium, Italy, the Netherlands, and Poland in opposing the pact.

Mercosur leaders celebrated the agreement. Brazil’s President Luiz Inácio Lula da Silva praised the deal’s acknowledgment of Mercosur’s environmental commitments, while Argentina’s President Javier Milei highlighted its alignment with his free-market policies.

The agreement is expected to significantly boost exports to Europe, including $7 billion annually for Brazil.

Despite the breakthrough, ratification faces challenges. Critics point to previous delays in EU trade deals, including with Canada, as a cautionary example. Observers warn that while the announcement is historic, implementation could take years. — Agencies