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EU-Mercosur trade deal: In a significant global economic event top officials from the EU and the South American bloc Mercosur have signed a free trade agreement. Taking the massive step towards paving the way for the European Unions largest-ever trade accord after 25 years of negotiations both the groups decided to create in Paraguay. Designed to lower tariffs and boost trade between the two regions the EU-Mercosur deal finalised on Saturday between the 27-nation EU and South America’s Mercosur bloc the deal has much larger global implications. What is covered in the EU-Mercosur deal? The EU-Mercosur deal will eliminate tariffs on 90% of trade boosting South American agri-exports like beef and soy to Europe while European industrial goods like cars and machinery get easier access to South America creating a massive market of over 700 million consumers. Read more: BIG update in India-US trade deal; first tranche of trade pact to be finalised by... Why the EU-Mercosur deal is good news for world? Highlights shift towards trusting multilateral trade agreements at a time US tariffs are troubling almost every country around the world. Creates a massive free trade zone with 700m+ consumers promoting global economic growth. The EU-Mercosur deal pushes back against protectionism and trade tensions around the world. The deal also boosts economic ties between Europe and South America at a time when US trade The EU-Mercosur deal also increases competition with China and US in Latin America. What EU leaders said on the EU- Mercosur trade deal? “We choose fair trade over tariffs we choose a productive long-term partnership over isolation” EU chief Ursula Von der Leyen said at the signing ceremony in Paraguay’s capital Asuncion. This agreement sends a very strong message to the world. It reflects a clear and deliberate choice. We choose fair trade over tariffs. We choose a productive long-term partnership over isolation she added. This agreement will help both our blocs navigate an increasingly turbulent political environment without abandoning our values marking a true milestone in shoring up our economic security European Council President Antonio Costa said on the deal.