Mercosur, South America's largest trade bloc, on Wednesday signed a trade deal with the four-nation European Free Trade Association (EFTA).

The EFTA is made up of Switzerland, Norway, Liechtenstein and Iceland, while Mercosur comprises full members Argentina, Brazil, Paraguay, Uruguay and Bolivia, as well as associate members Chile, Colombia, Ecuador, Guyana, Peru, and Suriname.

The deal, which has been a decade in the making, will establish a free trade area between the two blocs that covers nearly 300 million people and a combined gross domestic product (GDP) of more than $4.3 trillion (€3.64 trillion).

"Both sides will benefit from improved market access for more than 97% of their exports, which will boost bilateral trade and bring benefits to businesses and people," the organizations said in a joint statement.

What else do we know about the trade deal?

The "comprehensive and broad-based" Free Trade Agreement (FTA) covers trade of goods, services, investment, and intellectual property rights, among a range of other sectors.

The FTA will also see the removal of customs duties, which is designed to boost trade between the two blocs.

The agreement, which was announced as Mercosur leaders gathered for a summit hosted by Argentine President Javier Milei in Buenos Aires, still needs to be approved by parliaments from countries in both blocs.

Exploratory talks between EFTA and Mercosur began in 2015, with negotiations formally opening two years later. Fourteen rounds of talks have been held since.

The agreement comes after the European Union — of which the four EFTA nations are not members — sealed a similar deal with Mercosur late last year after 25 years of talks.

That deal, however, has not been ratified by all the EU member states' parliaments.

The agreement has faced opposition from France and Spain, amid fears of unfair competition that could harm their agricultural sectors.

Edited by: Sean Sinico