Argentina

Bolivia

Brazil

Paraguay

Uruguay

Economics

The European Union and Mercosur (a bloc formed by Argentina, Bolivia, Brazil, Paraguay and Uruguay) reached an agreement on the terms of a free trade deal, Reuters reported Dec. 6.

EU, Mercosur: Despite Pushback in Europe, EU-Mercosur Deal Likely to Be Ratified

Europe

France

Politics

The European Union and the Mercosur trade bloc -- which includes Argentina, Brazil, Uruguay and Paraguay -- are reportedly close to finalizing negotiations for a free trade agreement long in the making, Politico reported on Nov. 13, citing sources close to negotiations. 

EU, Mercosur: The Two Blocs Eye Free Trade Deal in Early December

France's new Prime Minister, Michel Barnier, reiterated Paris' opposition to a free trade deal between the European Union and the Mercosur bloc of Latin American countries, adding France will seek to form a 'blocking minority' in the EU Council, Euractiv reported Sept. 13.

France, EU, South America: Paris Reiterates Opposition to EU-Mercosur Free Trade Agreement

Argentina's outgoing President Alberto Fernandez said he will not sign a free trade agreement between the South American group of Mercosur countries and the European Union at the Mercosur summit in Rio de Janeiro, Brazil, on Dec. 7, La Nacion reported on Dec. 3.

EU, Americas: EU-Mercosur Trade Deal at Risk After Outgoing Argentine President's Rejection

The European Union and the Mercosur bloc of South America's largest economies are expected to reach a final agreement for a free trade deal during a meeting between European Commission President Ursula von der Leyen and Brazilian President Luiz Inacio Lula da Silva on the sidelines of the U.N. Climate Change Conference, Bloomberg reported on Nov. 30.

EU, Americas: EU and Mercosur Countries Near Final Deal for Free Trade Agreement

Venezuela

The Paraguayan Foreign Ministry announced the reestablishment of diplomatic ties with Venezuela, Reuters reported on Nov. 15.

Paraguay, Venezuela: Countries Restore Diplomatic Ties

Paraguay's President Santiago Pena said the European Union must finalize a trade deal with Mercosur by Dec. 6, or the South American bloc will walk away from negotiations and instead negotiate with Asian countries, the Financial Times reported on Sept. 24.

EU, South America: Mercosur Gives EU Ultimatum to Finalize Trade Talks by December

Diplomats and members of the European Parliament stated anonymously that splits between members of Mercosur, the South American customs union and trade bloc, are preventing the passage of the EU-Mercosur free trade agreement (FTA), Reuters reported on Sept. 11.

EU, South America: Mercosur's Divisions Dampen Prospect of EU Trade Deal

Assessments

Germany

(From left to right) Argentine President Javier Milei, Uruguayan President Luis Lacalle Pou, European Commission President Ursula von der Leyen, Brazilian President Luiz Inacio Lula da Silva and Paraguayan President Santiago Pena pose for a photo during the Mercosur summit in Montevideo on Dec. 6, 2024. 

Global Trade

The agreement offers significant market access and diversification opportunities for both trade blocs, but it also faces a complex ratification process and potential political backlash in Europe.

25 Years in the Making: Reviewing the EU-Mercosur Trade Deal

Snapshots

An illustrated map shows Mercosur countries.

Stalled trade deals and dwindling intra-bloc commerce will leave the South American trade bloc in a deadlock, likely resulting in only minor rule changes to prevent Mercosur's dissolution.

Mercosur's Latest Meeting Highlights Its Growing Stagnation

(From left to right) The presidents of Argentina, Paraguay, Brazil, Uruguay and Bolivia pose for photographs during the annual Mercosur leadership summit on Dec. 7, 2023, in Rio de Janeiro, Brazil.

Environment, Science & Technology

Science & Technology

The addition of Bolivia's small market will yield limited economic gains for the South American trade bloc, and may ultimately result in more internal disputes and challenges due to the country's political turbulence and poor environmental record.

For Mercosur, Bolivia's Accession May Bring More Headaches Than Benefits

Leaders of the summit between the European Union and the Community of Latin American and Caribbean States (CELAC) walk for a press conference on July 18, 2023, in Brussels, Belgium. From left to right are European Council President Charles Michel, Argentine President Alberto Fernandez, European Commission President Ursula von der Leyen, and Saint Vincent and the Grenadines Prime Minister Ralph Gonsalves, who is also the current president of CELAC.

A summit revives talks over an EU-Mercosur free trade agreement, but political constraints and protectionism stand in the way of a final deal.

The Obstacles Facing an EU-Mercosur Trade Deal

Media

Podcasts

RANE's Director of Analysis gives an update on the ongoing push to implement the two trade blocs' 2019 agreement.

Essential Geopolitics: Can the EU and Mercosur Resurrect Their Trade Deal? 

Israel

United Kingdom

India

Pakistan

A general view shows a Knesset session in Jerusalem, Israel, on March 20, 2023. 

A look at what the coming week will bring -- and a list of recommended RANE articles from the week that was.

The Weekly Rundown: The U.K. and Paraguay Hold Elections, Israel's Knesset Resumes

Americas

Mexico

A member of the airport police stands guard as a forklift unloads a container full of Russia’s Sputnik V COVID-19 vaccine from a plane in Ezeiza, Argentina, on Jan. 16, 2021. 

COVID-19

The delays will likely lead to further social unrest, economic strain and anti-government sentiment in countries across the region. 


Russia Delays Vaccine Shipments, Stalling Latin America’s Inoculation Efforts

Guidance

The national flag of Argentina flies above Avenida 9 de Julio, one of the major arteries of Buenos Aires, on Nov. 28, 2018. 

South America: Split Decisions on Trade

While it has yet to fully abandon the South American trade bloc, Argentina's withdrawal from current negotiations will still cripple Mercosur's ability to ink future deals.

By Exiting Trade Talks, Argentina Risks Sealing Mercosur's Fate

EU: Regional Blocs

Divided EU Foreign Policies

Both blocs will require unanimous consent for ratification. But securing yes votes from all member states will be a tall order.

EU, Mercosur: Why a Trade Deal Struck After 20 Years of Talks May Never Take Force

Argentine President Mauricio Macri, left, is pictured with his Brazilian counterpart, Jair Bolsonaro.

Brazilian President Jair Bolsonaro's efforts to lift trade restrictions could fall short of what he originally envisioned.

Argentine Elections Could Narrow Brazil's Mercosur Reform Path

Workers assemble cars at the Nissan plant in Resende, Brazil, during February 2015. Most major automakers have factories in Brazil and Argentina.

Supply Chains

Globalization

The South American trade bloc, known for its big import fees, has been slowly moving to open up its automotive sector.

For Mercosur, High Auto Tariffs Are All Part of the Game

The Global Impact of Trump's Auto Tariffs

Mercosur and the European Union have been negotiating a free trade agreement for more than 20 years, but never before have they been as close to achieving a deal as they are now. 

After years of talks, a free trade agreement with the European Union is within reach for the South American bloc. But there's little time to spare. Political uncertainties in Brazil and Argentina could snatch the moment away.

The Moment for Mercosur's Trade Agenda Is Now

Paraguay is a landlocked country squeezed by South America's two largest countries, Argentina and Brazil. Paraguay also borders Bolivia. Because of its geopolitical position, Paraguay's integration in the global economy is basically at the mercy of Argentina and Brazil.    In fact, the bloodiest war in South American history involved Paraguay against an alliance of Argentina, Brazil and Uruguay. The War of the Triple Alliance, from 1864 to 1870, was responsible for the death of almost 90 percent of Paraguay's total male population. Additionally, Paraguay lost territory on the borders with Argentina and Brazil that it had long claimed as its own.    Paraguay also fought a war in the 1930s with Bolivia. But if the War of the Triple Alliance resulted in the loss of disputed territory, the Chaco War, as the conflict is known, ended with Paraguay in control of two-thirds of the semi-arid region of Chaco located on the border between the two countries.    The core of Paraguay is around its capital city, Asuncion, which is located at an important transit point in the Paraguay-Parana waterway, which connects Brazilian, Paraguayan and Argentine markets. Paraguay's proximity to South America's largest economies, Argentina and Brazil, as well as its low production costs have made the country a top destination for Argentinian and Brazilian manufacturing investments.    Since the early 1990s Paraguay has been a full member of the Common Market of the South along with Argentina, Brazil and Uruguay. Membership in the bloc gives Asuncion veto power in trade negotiations involving these countries as well as trade tariff preferences.

SITUATION REPORTS

EU, Mercosur: Despite Pushback in Europe, EU-Mercosur Deal Likely to Be Ratified

EU, Mercosur: The Two Blocs Eye Free Trade Deal in Early December

France, EU, South America: Paris Reiterates Opposition to EU-Mercosur Free Trade Agreement

EU, Americas: EU-Mercosur Trade Deal at Risk After Outgoing Argentine President's Rejection

EU, Americas: EU and Mercosur Countries Near Final Deal for Free Trade Agreement

Paraguay, Venezuela: Countries Restore Diplomatic Ties

EU, South America: Mercosur Gives EU Ultimatum to Finalize Trade Talks by December

EU, South America: Mercosur's Divisions Dampen Prospect of EU Trade Deal

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