German Chancellor Friedrich Merz and Brazilian President Luiz Inacio Lula da Silva hailed the EU-Mercosur trade deal as a response to tariffs and trade protectionism, a move seen as a criticism of US President Donald Trump's unilateral policies.
The deal, set to take provisional effect on May 1, will create a market of almost 720 million people and a GDP of $23 trillion, making it a significant opportunity for European and South American businesses.
Merz and Lula emphasized the importance of cooperation and trust between the EU and Mercosur countries, with Merz stating that the deal will make all economies involved stronger, more independent, and more resilient.
The pact has faced opposition from European farmers' groups, but Germany has long championed the deal as a way to find new export markets and revive its struggling industrial economy.
