Argentina

Brazil

Paraguay

Uruguay

Venezuela

Liechtenstein

Norway

Switzerland

Iceland

Economics

Politics

South America's Mercosur trade bloc and the European Free Trade Association, or EFTA, finalized a free trade agreement that will cover 97% of shipments between the entities, Reuters reported on July 2. 

South America, Europe: Mercosur- EFTA Free Trade Agreement Finalized Amid U.S. Protectionism

Bolivia

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

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

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

Assessments

Canada

United States

Lebanon

United Arab Emirates

Indonesia

Japan

Singapore

South Korea

Vietnam

The Geopolitics of Trade

Global Trade

Mercosur is increasingly opening its markets in pursuit of free trade agreements with partners around the world, particularly as U.S. protectionism shifts global trade dynamics.

The Geopolitics of Trade: What Changing Trade Dynamics Mean for Mercosur

Snapshots

A photo shows the national flags of Mercosur countries waving in the wind.

The South American trade bloc's July 2-3 summit will likely advance two key initiatives: increasing member state autonomy on tariff decisions and finalizing free trade deals with countries seeking to avoid U.S. tariffs.

The Mercosur Summit Will Focus on Advancing Tariff Autonomy and Trade Deals

Belize

Chile

Colombia

Costa Rica

Cuba

Dominican Republic

Ecuador

El Salvador

Guatemala

Guyana

Haiti

Honduras

Mexico

Nicaragua

Panama

Peru

Suriname

China

(L-R) Colombian Foreign Minister Laura Sarabia, Chinese Foreign Minister Wang Yi and Honduran Foreign Minister Eduardo Enrique Reina attend a plenary session of the China-CELAC ministerial meeting at the Great Hall of the People on May 13, 2025, in Beijing, China. 

Latin America and the Caribbean will welcome China's increased engagement, but strong ties to the West and China's economic slowdown will limit Beijing's influence in the region.

Despite Stronger Trade Ties, China's Influence in Latin America Will Remain Limited

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. 

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

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

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

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

South America, Europe: Mercosur- EFTA Free Trade Agreement Finalized Amid U.S. Protectionism

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

Forecasts

ANALYSES

SECTIONS

Explore

Subscribe

Help & Support