President of the European Commission (EC) Ursula von der Leyen. (Photo: Xinhua/VNA)

During a press conference in Montevideo, Uruguay, European Commission President Ursula von der Leyen described the agreement as "mutually beneficial," highlighting that businesses on both sides would gain from streamlined customs procedures and preferential access to critical raw materials.

Mercosur, founded in 1991, comprises Argentina, Brazil, Uruguay, and Paraguay, representing over 275 million people and contributing more than 82% of South America’s GDP.

While the FTA promises to foster a more favorable environment for international trade, it must still secure approval from all EU member states.