South American Mercosur bloc to sign long-awaited trade deal with EU

The treaty will favor European exports of cars, wine, and cheese, while making it easier for South American beef, poultry, sugar, rice, honey, and soybeans to enter Europe © Francisco RAMOS MEJIA / AFP/File

Asuncion (Paraguay) (AFP) – The South American trade bloc Mercosur and the European Union will sign on Saturday a deal 25 years in the making to create one of the world's largest free trade areas at a time of growing protectionism and volatility.

The long-awaited agreement comes amid the sweeping use of tariffs and trade threats by US President Donald Trump's administration, which has sent countries scrambling for new partnerships.