The deal, which has largely been overshadowed by a stalled trade pact between Mercosur and the larger European Union, comes as the world's trade balance shifts on uncertainty caused by US President Donald Trump's tariffs. Mercosur and the European Free Trade Association (EFTA), comprised of Norway, Iceland, Switzerland and Liechtenstein, will benefit "from improved market access for more than 97% of their exports," they said in a joint statement. That trade pact was agreed, at least in principle, in December last year, but has faced pushback from countries such as France. Mercosur member states on Wednesday also agreed to expand the number of tariff-free imports coming from within the bloc. Argentina had sought more exemptions to facilitate a possible trade deal with the United States, though libertarian President Javier Milei has also pushed for a potential agreement outside of Mercosur.