More than twenty years after negotiations began, the European Union and the Mercosur countries – Argentina, Brazil, Paraguay and Uruguay - have finally reached a trade agreement, European Commission President Ursula von der Leyen announced from a summit in Uruguay on Friday.

"Today marks a truly historic milestone," von der Leyen said, adding the deal was "an ambitious and balanced agreement".

Negotiators from the Latin American trade bloc were assembled in Montevideo with the EU trade negotiation team to iron out the deal, that will cover 780 million people between both zones. But the deal will need a sign off from EU 27 member states.

For several weeks, France, which opposes the agreement, has been trying to win over its partners to block the deal. Poland has officially announced its intention to join a coalition opposed to the agreement, and in a statement published on Friday Italy made its agreement conditional on guarantees for its farmers.

The votes of Ireland, the Netherlands and Austria remain subject to doubt.

For its supporters, the agreement will open new markets for Europeans, while maintaining influence in the region at a time when China is increasing its investments in Latin America. Its opponents are worried about competition from imports of agricultural products into Europe.

"The final political agreement" reached on Friday, is "just a first stage before a long process", a Commission spokesperson said about the future signature of the deal by EU member states.

The striking of a deal in the face of strong French opposition comes at a sensitive moment for French President Emmanuel Macron, who has personally touted France's opposition to the deal, and who is currently faced with the task of appointing a new government in the wake of the collapse of the administration of  Prime Minister Michel Barnier this week.