EU and Mercosur leaders attend trade deal signing in Asuncion

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

The deal between the 27-nation European Union 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.

Trump on Saturday threatened multiple European nations with tariffs of up to 25 percent until he manages to gain control of the Danish territory Greenland. "They choose fair trade over tariffs, they choose a productive long-term partnership over isolation," EU chief Ursula Von der Leyen said at the signing ceremony in Asuncion, Paraguay.