The European Union has approved the Mercosur trade deal with four counties in South America.

A majority of EU member states confirmed they would back the agreement at a meeting of  EU Ambassadors in Brussels on Friday, with Ireland and France among the countries who voted against it.

The new agreement aims to increase trade opportunities with Argentina, Brazil, Paraguay and Uruguay who are part of the Mercosur bloc.

Farmers here are opposed to the deal, raising concerns over the standard of beef which will be imported as a result.

However, those in favour of the new trade deal say it will have a positive impact on Ireland's economy and increased competition could help lower prices in supermarkets.

The European Parliament Room (debating chamber) in Brussels. Image: JLBvdWOLF / Alamy. 30 July 2014

The agreement will now need to be ratified by MEPs in the European Parliament.

The Irish Farmers' Association (IFA) has said it's disappointed with the outcome of Friday's meeting.

The IFA said the EU Commission should feel concerned about outcome of the vote with the member states' voting 'No', representing just over 31% of the EU's population.

The group representing farmers here said it will renew its focus to lobby MEPs to vote against passing the deal when it comes before the parliament in the coming weeks.