Peru, Colombia and the European Union (EU) signed a free trade agreement (FTA) in Brussels Wednesday.

The total value of the agreement is worth 724 million U.S. dollars, Peru's state-run news agency Andina cited EU Trade Commissioner Karel De Gucht as saying.

According to the agreement, the three sides have agreed to "eliminate distortions to their trade, and to prevent the creation of unnecessary obstacles to trade."

"This agreement will open a new framework for bilateral trade and investment between the EU and the signatory countries," the EU Delegation to Peru said on its website.

The agreement is a milestone in the EU's trade relations with the Andean region, De Gucht said.

Bilateral trade in goods between the EU and the two Andean Community members was worth 16 billion dollars in 2010.

Negotiations for a free trade agreement between Colombia, Ecuador, Peru and the EU began in January 2009, but Ecuador suspended its participation in July 2009. The three remaining partners signed an agreement Wednesday after a series of negotiations.