Talks on a landmark free trade deal between the European Union and the South American alliance known as Mercosur are expected to culminate in a formal signing this Saturday in Paraguay, marking the end of a quarter-century of negotiations. The agreement, the first major trade deal for Mercosur, aims to lift tariffs on a wide range of products, including Argentine steaks, Brazilian copper, German cars, and Italian wine.

The EU-Mercosur trade pact creates one of the world's largest free-trade zones, encompassing more than 700 million people and accounting for a quarter of global gross domestic product. Mercosur includes Brazil, Argentina, Paraguay, and Uruguay. Bolivia, the newest member, was not involved in the negotiations but can join the agreement in the coming years.

Negotiations began long before the introduction of the euro, China's entry into the World Trade Organization, and Venezuela's decline as a major oil provider to the United States. The deal faced challenges, including resistance from protectionist lobbies.

The agreement still requires ratification by the European Parliament. If ratified, the deal is expected to have significant implications for trade relations between the two regions, potentially reshaping global supply chains and impacting various industries.