Three Perspectives on the Mercosur–European Union Agreement

Just a trade deal?

After 25 years of negotiations and discussions, an agreement between the EU and Mercosur is within reach. In December 2024, the two partners announced the political conclusion of the association of the agreement, which could eventually be greenlit and ratified by the end of 2025. 

According to the European Union's definition of international policy, an 'association agreement' implies commitments in the areas of political dialogue and cooperation. However, the negotiations have always focused on trade.

Voices from the Mercosur region

Official voices on the Mercosur side have defended the agreement, emphasising the importance of reaffirming the regional bloc's status as a powerful player in international trade negotiations. The EU has highlighted the importance of an agreement that provides access to a significant and attractive market, given the region's availability of raw materials and energy — essential goods for strategic autonomy. At the same time, various critical voices from trade unions and civil society in both regions have warned of the agreement's persistent asymmetry.

This series of analyses from Latin American trade experts, published by FES Uruguay, examines the Mercosur–European Union agreement on different levels. It provides critical insights into the agreement's economic, environmental, and geopolitical impacts, and highlights the risks associated with the regional bloc's subordinate integration into global trade.

Damián Rodríguez and Bruno Theodoro Luciano analyse the geopolitical implications of the agreement within the context of the reconfiguration of the international order. Adopting a critical stance, the authors examine how both regions approach the concept of 'strategic autonomy' and discuss the challenges South America faces in integrating into global value chains while retaining the capacity to design development-oriented public policies.

Marta Castilho, Kethelyn Ferreira and João Braga look into the commercial, industrial and environmental effects of the agreement, warning about its asymmetrical impacts and the risks it poses to Mercosur's productive development. Despite recent improvements in sensitive areas, such as the automotive industry and government procurement, the text emphasises that the agreement consolidates the region's position as an exporter of low-value raw materials.

Julieta Zelicovich presents an analysis of the regional integration. It evaluates the effects of the agreement on Mercosur's cohesion, institutional density, and joint negotiating capacity. While identifying positive impacts in terms of external reputation and institutional agenda, the text also warns of significant risks to intraregional trade and the bloc's ability to act as a common platform.