Representatives of the European Union and South American nations signed a free trade agreement on Saturday, but the deal is not final until approved by a vote of the European Parliament.

This is the first major trade agreement for Mercosur, which includes Brazil and Argentina, along with Paraguay and Uruguay.

Saturday's signing ceremony in Paraguay's capital of Asunción marks a major geopolitical victory for the EU in an age of American tariffs and surging Chinese exports. 'The…