BRUSSELS

The European Union will sign the long-awaited trade agreement with the Mercosur bloc in Paraguay on Jan. 17, EU Commission spokesperson Paula Pinho told a midday press briefing on Monday.

EU Commission President Ursula von der Leyen, accompanied by EU Council President Antonio Costa, will travel to Paraguay to formalize the deal with leaders of the Mercosur countries – Argentina, Brazil, Paraguay, and Uruguay.

"It will be an historic moment in the history of our European Union," she said, noting that the agreement took 25 years to negotiate.

The agreement aims to reduce tariffs on agricultural products such as beef, poultry, dairy, sugar, and ethanol from Mercosur countries, while providing European industries with greater access to South American markets.

The deal was approved by EU members on Friday, after earlier attempts were delayed in December due to farmer protests and opposition from countries including France, Ireland, Hungary, and Poland.

Still, European farmers continue to voice concerns, arguing that cheaper imports produced under lower standards could create unfair competition and threaten the survival of small-scale farms across the EU.

The agreement now needs to be approved by the European Parliament. "In the commission, our sole focus at the moment is to sign the deal. We are continuing to work with MEPs and engage with them because we feel we have a deal on the table," spokesperson Olof Gill said.

Asked whether the deal can be applied before parliamentary ratification, Gill said: "The treaty does allow for this possibility. Yes."