Historic EU-Mercosur Trade Pact Signals New Era in Global Economy

Brazil and the EU anticipate the historic signing of a free trade agreement with Mercosur, creating one of the world's largest free trade zones. Though Brazilian President Lula da Silva will not attend the ceremony, his efforts in securing the deal have been praised. The agreement promises significant economic impacts and political signals.

The European Union and Mercosur members are set to make economic history, finally preparing to sign a free trade agreement after 25 years of negotiations. The pact, formalized on Saturday in Paraguay, creates one of the largest free trade zones."

Brazilian President Luiz Inácio Lula da Silva, a key proponent of the deal, has opted out of the ceremony, choosing instead to underline Brazil's broader ambitions beyond commodity exports. His absence hints at frustrations over delays in finalizing the agreement.

The deal, which President Ursula von der Leyen hailed as a testament to international partnership and prosperity, is seen as a strategic counter to the rising influence of the US and China. It promises enhanced access for South American agricultural exports to European markets while striving for equitable terms in trade relations.

(With inputs from agencies.)