The European Union and the South American bloc Mercosur of Argentina, Brazil, Paraguay and Uruguay finalised a free trade agreement on Friday, although it faces a tough battle to secure approval by the 27 EU member states.

The European Union and four members of the South American trade bloc Mercosur - finalized a free trade agreement. Read more.

“The EU-Mercosur agreement isn’t just a trade deal, it’s a trade-off,” said Birthe Steenberg, secretary general of AVEC. ”By favouring short-term export gains, the EU puts our strategic autonomy in agriculture on the line, undermines EU farmers and, ultimately, jeopardises its long-term sovereignty.”

Germany's goal remains to find an amicable solution in negotiations on a trade deal with South America's Mercosur bloc and it is in talks with all partners, including France, which opposed the agreement,

European Union and Mercosur trade bloc announce free trade deal that’s 25 years in the making. 24/7 coverage of breaking news and live events

While the EU is Mercosur’s second-largest trading partner, accounting for nearly 17 percent of its total trade last year, the region’s economies are “highly protected,” and European firms “face many trade barriers when exporting there, which makes it hard for them to compete under fair conditions,” the Commission said Friday.

Almost 25 years on from the first opening of negotiations, the the EU and Mercosur reach agreement for free-trade deal that will create a market exceeding 700 million people.

Negotiations for the EU-Mercosur agreement have concluded after 25 years. The two sides will now have to ratify the deal, but it could still be blocked as it has many opponents — particularly in Europe.