Europe and South America made a new trade deal. It happened in Paraguay. This is a big agreement. It took 25 years to agree.
The deal makes a large trade area. It will remove trade problems. This helps Europe and South America work together. Leaders from both sides agreed. It is good for open trade.
Taxes on many things will be lower. This will help trade grow. It can also make new jobs. The deal is good for the economy.
Mercosur is Brazil, Argentina, Paraguay, and Uruguay. These countries can sell more to Europe. They will pay less tax on food. They can also sell factory goods.
The deal is not final yet. The European Parliament must agree. The parliaments in Mercosur countries must also vote.
Some people are happy. Farmers in Cyprus will pay no tax on cheese. This is good for them.
But some people are worried. Farmers and nature groups have fears. They worry about more goods coming in. They also worry about nature. Some farmers protested.
Leaders say it is fair trade. The deal wants good rules. It wants to build strong ties.