EU, Mercosur ink major trade deal, reject ‘tariffs’, ‘isolation’

South American and European Union officials on Saturday signed a major trade deal, which they hailed as sending a powerful message at a time of tariff threats, global uncertainty and protectionism.

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From left: Panama's President Jose Raul Mulino, Bolivia's President Rodrigo Paz, European Council President Antonio Costa, European Commission President Ursula von der Leyen, Paraguay's President Santiago Pena, Argentina's President Javier Milei, Uruguay's President Yamandu Orsi and Brazil's Foreign Minister Mauro Vieira in Asuncion on Saturday.AFP

The deal between the 27-nation EU and Mercosur bloc members Brazil, Argentina, Uruguay and Paraguay creates one of the world’s largest free trade areas after 25 years of tricky negotiations.

It was given fresh impetus amid the sweeping use of tariffs and trade threats by US President Donald Trump's administration, which has sent countries scrambling for new partnerships.

Mr Trump on Saturday threatened multiple European nations with tariffs of up to 25% until he manages to gain control of the Danish territory Greenland.