The Mercosur and the European Union (EU) are on the verge of turning their long-awaited trade deal into a reality after 25 years of negotiations. The agreement will gradually eliminate tariffs on over 90% of bilateral trade between the blocs.

The deal took a major step after a majority of the EU member states endorsed it on January 9 at the European Council.

On Saturday Ursula von der Leyen, head of the European Commission, is scheduled to sign the accord in Asunción, Paraguay, with the representatives of the Mercosur countries: Argentina, Brazil, Paraguay, and Uruguay.

Last week the deal was backed by 21 European nations. Austria, France, Hungary, Ireland and Poland voted against, and Belgium abstained.

If enacted, it will connect the EU countries with the markets of Mercosur members and create the world’s largest free-trade area, comprising more than 715 million inhabitants (447 million in the EU and 270 million in Mercosur).

But before coming into fruition, the pact must first sort a variety of hurdles, which — according to some experts — won’t be that easy to pass.

While commonly referred to as the Mercosur-EU deal, it actually consists of two parts that have to be approved individually: the EU-Mercosur Partnership Agreement (EMPA) and the Interim Trade Agreement (ITA).

The latter is a trade-only pact that falls under EU competence. That means it needs endorsement from the EU Council and the European Parliament to enter into force, but does not need to be........

© Buenos Aires Herald