The European Commission and four Mercosur countries, Brazil, Argentina, Paraguay and Uruguay, reached an agreement on a trade deal on 6 December 2024. Upon approval, the partnership agreement would open up a large market for European Union businesses. Removing the high tariffs in the Mercosur countries is expected to save EU companies an estimated EUR 4 billion in tariffs per year, boosting trade, investment and economic growth. Dismantling trade barriers would also help European companies diversify their supply chains.