France’s Senate has voted to reject the Mercosur free trade agreement between the European Union and South American countries, following a similar vote in the National Assembly, as farmers continue to protest against a deal they say would bring unfair competition.

Brazilian President Luiz Inacio Lula da Silva said on Wednesday he hoped a trade deal between the European Union and the South American Mercosur bloc would be signed by the end of this year, even as it faced opposition,

For the EU, the deal would mean lower tariffs on products like cars, machinery and chemicals. Mercosur countries would benefit from better access to EU markets for agricultural exports such as beef, poultry and sugar.

The European Union and four Latin American countries are preparing for a final push to clinch a controversial free trade deal that has been under discussion for 25 years. Backed by Germany and Spain,

A trade agreement between the European Union and Mercosur countries, which includes a significant section on agriculture, has triggered protests from EU farmers who argue farm imports from South America do not meet European standards.

The deal has been 25 years in the making and it aims to create one of the largest free trade zones in the world - but farmers in Europe are heavily opposed to sealing it, saying that they cannot compete with South American livestock producers.