The Obstacles Facing an EU-Mercosur Trade Deal

The European Union and the South American trade bloc Mercosur will continue negotiating their free trade agreement, but political calculations and protectionism will prevent them from reaching a near-term deal. While gathered at a July 17-18 summit between the European Union and the Community of Latin American and Caribbean States (CELAC), the members of Mercosur (Argentina, Brazil, Paraguay and Uruguay) restarted negotiations over a free trade agreement with the European Union. However, no technical discussions over the details of the stalled agreement took place, and negotiators failed to make significant progress. The ratification of the FTA would enable the European Union to further diversify its supply chains following Russia's invasion of Ukraine in February 2022, and it would enable Mercosur members to more easily export the products of their agriculturally-driven economies to the European market....