European Union flags fly outside the European Commission in Brussels, Belgium November 8, 2023. (Photo: REUTERS/Yves Herman)

The agreement to eliminate tariffs on more than 90% of goods exchanged between the two blocs has caused significant division within Europe. France, in particular, has led the opposition due to concerns that domestic farmers will suffer losses.

But with support from the majority of member states, the EU remains determined to push forward with the deal to diversify trade amid growing challenges from the US and China.

The EU-MERCOSUR trade deal will create one of the world's largest free trade areas. Together, the EU and MERCOSUR account for 30% of global Gross Domestic Product (GDP) and represent more than 700 million consumers.