Core Points - The European Union and the Southern Common Market have signed a free trade agreement after 25 years of negotiations, creating one of the largest free trade areas globally [1] - The agreement will eliminate over 90% of bilateral trade tariffs, benefiting EU exports of automobiles, machinery, wine, and spirits, while improving access for Southern Common Market agricultural products like beef, sugar, rice, honey, and soybeans to the EU market [1] - The agreement is seen as a strong signal of support for multilateralism and long-term cooperation amid rising global uncertainties [1] Trade Impact - EU exports to the Southern Common Market are expected to increase by approximately 39% following the agreement [1] - Southern Common Market exports to the EU are projected to grow by about 17%, which will further reshape the transatlantic trade landscape [1] - The implementation of the agreement should avoid restrictive measures such as quotas and safeguards that could undermine its spirit [1]