EU, Mercosur heave free trade deal over the line but potential obstacles loom large | U.S. & World [Video]

By Lucinda Elliott, Lisandra Paraguassu and Philip Blenkinsop

MONTEVIDEO/BRUSSELS (Reuters) – The European Union and South America’s Mercosur bloc dragged a long-delayed free trade deal over the line on Friday, announcing an agreement – at least in principle – on the pact that has deeply divided nations in Europe.

In a press conference in Montevideo, European Commission President Ursula von der Leyen and her Mercosur counterparts heralded the deal after 25 years of talks, citing the need for free trade in the face of rising protectionism globally.

“This agreement is not just an economic opportunity, it is a political necessity,” von der Leyen said. “I know that strong winds are coming in the opposite direction, towards isolation and fragmentation, but this agreement is our near response.”

European officials and proponents of the deal say that it offers a way to reduce reliance on trade with China as well as insulating EU nations from the impact of likely trade …