The European Union and Mercosur officially signed one of the world’s largest free trade agreements on Saturday, ending a negotiation process that spanned more than two decades. The deal aims to eliminate tariffs on billions of euros in goods and services between the two blocs.

This agreement creates a combined market of nearly 800 million people, offering new opportunities for European manufacturers and South American agricultural exporters. It follows years of stalled talks and political hurdles on both continents, driven by changing economic priorities and protectionist pressures.

What happens next involves ratification by each member state's parliament, a process that could take years. The deal’s success hinges on navigating domestic opposition, particularly from European farmers concerned about South American competition and environmental standards in the Amazon region.