Mercosur, EU sign free trade agreement in Asuncion

The Southern Common Market (Mercosur) and the European Union (EU) on Saturday signed a free trade agreement in Paraguay's capital city of Asuncion, marking the conclusion of 25 years of negotiations toward one of the world's largest trade accords.

The agreement aims to reduce tariffs and expand trade between the two blocs and now awaits approval by the European Parliament, as well as ratification by the legislatures of Mercosur member states Argentina, Brazil, Paraguay and Uruguay. Paraguayan President Santiago Pena, whose country holds the Mercosur presidency, thanked leaders from both blocs for their efforts, calling Saturday "a truly historic day."