EU states have provisionally approved the bloc's largest free trade accord with South America's Mercosur after more than 25 years of negotiations, reports Reuters.

At least 15 countries representing 65 per cent of the EU's population voted in favour, enough for approval. France, Austria, Hungary, Ireland and Poland opposed the deal, while Belgium abstained.

German Chancellor Friedrich Merz hailed the vote as a milestone, saying the agreement would benefit Europe. Commission President Ursula von der Leyen is expected to sign the accord with Argentina, Brazil, Paraguay and Uruguay in Asuncion.

The deal would remove EUR4 billion (US$4.66 billion) of duties on EU exports, making it the bloc's largest tariff reduction. Mercosur tariffs include 35 per cent on car parts, 28 per cent on dairy and 27 per cent on wines.

EU exports are dominated by machinery, chemicals and transport equipment, while Mercosur exports focus on agriculture, minerals, pulp and paper. Trade between the two blocs was worth EUR111 billion in 2024.

Farmers across Europe protested against the deal, blocking highways in France and Belgium and marching in Poland. Critics say cheap imports of beef, poultry and sugar will undercut domestic producers.

The European Commission introduced safeguards, including crisis funds, stricter import controls and the ability to suspend sensitive farm imports. Italy shifted from opposing the deal in December to supporting it.

France's agriculture minister Annie Genevard vowed to fight for rejection in the European Parliament, where the vote could be tight. Environmental groups also oppose the accord, warning it could drive deforestation in the Amazon.

Parliament's trade committee chairman Bernd Lange said he was confident the deal would pass, with a final vote expected in April or May.

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