The EU and Mercosur (Argentina, Brazil, Uruguay, and Paraguay) are on the verge of finalizing a significant trade agreement after over two decades of negotiations. EC President Ursula von der Leyen and Brazilian President Lula da Silva plan to meet at the COP28 climate summit to finalize the deal. The agreement, creating a market of 780 million consumers, would be one of the world’s largest free trade pacts, cutting around EUR 4 bln in import tariffs for European exporters and opening European markets for South American industries and agriculture.