Negotiators from both the EU and the Mercosur group of South American nations have expressed hopes that a proposed free trade agreement (FTA) between the two blocs can be reached before the end of the year.

Officials on both sides have told the Financial Times (FT) there is fresh impetus to get a deal over the line, despite objections from the French government.

If concluded, the agreement would cover markets including 780 million people and save businesses on both sides a combined total of more than €4 billion in tariffs every year. One EU diplomat described the FTA as a "geopolitical and economic necessity".

Despite being more than two decades in the making, there had been fears earlier this year that FTA negotiations were set to collapse after French president Emmanuel Macron went public with his opposition, citing concerns over the environmental impact and worries that it would result in unfair competition to France's agricultural sector.

However, the FT noted that there has been little support in the EU for Mr Macron's stance, with only Austria backing France. Therefore, Brussels is confident that the deal can be approved despite these objections, as only a majority of the EU's 27 members need to support the deal for it to proceed.

Another diplomat involved in the talks told the FT: “We have some remaining issues that are important. It isn’t easy, but we have advanced a lot.”

Recently re-elected European Commision president Ursula von der Leyen has also committed to finalizing the agreement, and discussions on the FTA are expected to be on the agenda when she travels to Brazil in November for talks with president Luiz Inácio Lula da Silva as part of a G20 summit.