European Union countries have agreed to sign a large free trade deal. This is with Mercosur, a group of South American countries. The agreement comes after more than twenty-five years of talks. It will create the EU's biggest trade pact ever. Cyprus called it a "historic milestone."
Mercosur countries will lower taxes on 91% of EU goods. This will happen over fifteen years. The EU will also lower taxes on 92% of goods from South America. This will take ten years. Supporters say the deal will create many business chances. It will also make trade fairer for everyone.
Most EU countries voted for the deal. Twenty-one countries said yes. However, five countries had worries. Austria, France, Hungary, Ireland, and Poland were not happy. Belgium did not vote. Still, enough countries voted yes. The European Commission helped with the talks.
The deal is more than just about money. It is a way to support international trade. Brazil's President said it is important in a world with more protectionism. The deal also aims to help with US trade issues. It will help the EU get raw materials. This will reduce dependence on China.
Cyprus expects more exports of wine and cheese. Its shipping business may also grow. However, some local farmers may face more competition. This is for products like beef and poultry. The deal has rules to help if imports become too high.
The trade deal is not finished yet. The European Parliament must also approve it. Some national parliaments may need to vote too. This means more discussions are expected. The deal has specific amounts for goods like beef and cheese. This shows how complex the agreement is.