MEXICO CITY — The European Union (EU) and the Southern Common Market (MERCOSUR) are accelerating efforts to formally sign a free trade agreement (FTA) before the end of the year. This move, if successful, would culminate over a quarter-century of negotiations and establish one of the world's largest free trade zones.

The push was highlighted in a recent phone call between Brazilian President Luiz Inácio Lula da Silva and European Commission President Ursula von der Leyen. Lula, who holds the rotating presidency of MERCOSUR for the second half of this year, expressed his hope for the agreement's finalization. According to a statement from the Brazilian President's office, President Lula welcomed the European Commission's decision to seek approval from its member states for the pact. "This is a significant step forward, and I hope we can sign the agreement at the MERCOSUR summit in Brazil at the end of the year," he stated during the approximately 20-minute conversation.

The Brazilian leader also emphasized that any safeguard measures internally adopted by the EU must be fully compliant with the provisions agreed upon in the trade deal.

An agreement in principle was reached between the two blocs in December of last year after 25 years of on-and-off negotiations. The deal would see the EU gradually eliminate tariffs on 92% of its imports from MERCOSUR, while MERCOSUR would do the same for 91% of its imports, with some exceptions for sensitive agricultural products.

MERCOSUR comprises full members Argentina, Brazil, Paraguay, and Uruguay. When combined with the EU's 27 member states, the two blocs represent a population of approximately 700 million people and account for about 20% of the world's economic output. Brazil views the FTA as a crucial step toward creating a massive single market that would encompass nearly a quarter of the world's GDP.

For the agreement to take effect, it must be ratified by at least 15 EU member states representing at least 65% of the bloc's population, and it must also be approved by the European Parliament.

Both leaders reaffirmed their commitment to multilateralism and a fair and peaceful international order amid rising uncertainties in global trade. They also agreed on the importance of the upcoming COP30 climate change conference, which is scheduled to be held in Belém, Brazil, in November.