(CNN)After more than 20 years of negotiations, Mercosur and the European Union reached a comprehensive trade agreement in Brussels on Friday.

“The new trade framework — part of a wider Association Agreement between the two regions — will consolidate a strategic political and economic partnership and create significant opportunities for sustainable growth on both sides,” a European Union news release said.

#Mercosur #trade deal done! A historical moment. In the midst of international trade tensions, we are sending a strong signal that we stand for rules-based trade. Largest trade agreement 🇪🇺 has ever concluded. Positive outcome for environment & consumers.https://t.co/AE5z78c81J

— Jean-Claude Juncker (@JunckerEU) June 28, 2019 According to the EU statement, the deal will remove the majority of tariffs on EU exports to Mercosur, a bloc comprising Argentina, Brazil, Paraguay and Uruguay. The Mercosur countries have agreed to open their markets to the European Union, saving them more than $4.5 billion worth of duties per year. This makes it the largest trade agreement the European Union has ever concluded.The trade pact will cover a population of more than 780 million and will consolidate the political and economic partnerships between the countries. “I measure my words carefully when I say that this is a historical moment. In the midst of international trade tensions, we are sending today a strong signal with our Mercosur partners that we stand for rules-based trade,” the president of the European Commission, Jean-Claude Juncker, said. Read MoreThe trade agreement is part of a larger association agreement that is set to enhance political dialogue and increase cooperation in areas such as migration, environmental protection, digital economy and human rights.

Source Link: