Brazilian president enacts Mercosur-EU free trade agreement

Brazilian President Lula da Silva on Tuesday signed a decree enacting a free trade agreement between the Southern Common Market (Mercosur) and the European Union (EU), marking a key step toward creating one of the world's largest trading areas.

The agreement, previously approved by Brazil's Congress, will begin to take effect gradually from May 1. Speaking at the signing ceremony, Lula said the deal followed a long negotiation process and highlighted its importance in strengthening multilateralism. The agreement, signed in January after 26 years of negotiation, provides for the gradual reduction or elimination of tariffs on over 90 percent of trade between the two blocs.