The European Union has reached a free trade agreement with South America's Mercosur bloc, which includes Brazil, Argentina, Paraguay, and Uruguay. This historic deal comes 25 years after talks began and aims to increase trade between the regions. Brazilian President Luiz Inacio Lula da Silva called it a "historic day for multilateralism." The EU Commission President Ursula von der Leyen said the deal will "bring meaningful benefits to consumers and businesses, on both sides." The deal still needs approval from the European Parliament in the coming months. Despite support from most EU member states, farmers in several European countries protested, fearing competition from cheaper imports. Judy Peeters, a Belgian young farmers' representative, said, "There is a lot of pain. There is a lot of anger." Von der Leyen said the Commission listened to farmers' concerns and added "robust safeguards" to protect their livelihoods. The agreement is expected to save European companies around €4 billion annually in export duties. This pact also aims to fight climate change by including commitments to end deforestation and secure raw materials vital for the global green transition. Cecilia Malmström, former EU trade commissioner, warned parts of the deal may be suspended if Mercosur countries fail to meet environmental promises. Economists say the deal's economic impact will be small, raising EU output by just 0.05%. Jack Allen-Reynolds from Capital Economics noted, "the benefits won't arrive until 2040 at the earliest," as the deal will be phased in over 15 years. The EU presented the deal as a fight against rising global protectionism, especially amid tensions following US tariffs and intervention in Venezuela. The agreement marks the EU's largest free trade accord so far, supporting international trade as a driver for growth on both sides.