The European Union (EU) and the Mercosur countries have signed a free trade agreement, bringing negotiations that began in 1999 to a successful conclusion.

Axar.az reports that the agreement was signed at a ceremony in Paraguay by President of the European Council António Costa, President of the European Commission Ursula von der Leyen, the heads of state of Mercosur countries Argentina, Paraguay, and Uruguay, as well as Brazil’s foreign minister.

The agreement envisages the creation of the world’s largest free trade area, uniting regions with a combined population of more than 700 million across the EU and Mercosur countries. Although Bolivia is a member of Mercosur, it will not join the agreement in the initial phase.

The deal was approved last week by a majority vote of 21 out of the EU’s 27 member states. The new free trade zone is intended as a protective measure against the protectionist customs policies of U.S. President Donald Trump. Under the agreement, tariffs on more than 90 percent of goods traded between the EU and Mercosur are to be eliminated. As a result, the EU’s annual exports to Mercosur countries are expected to increase by 39 percent, or approximately $49 billion.

The agreement is expected to create significant opportunities for Europe’s pharmaceutical, machinery, and automotive industries.