Explaining Brazil #249: Do-or-die moment for Mercosur and the EU?

In 2019, the EU and Mercosur — the trade alliance between Brazil, Argentina, Uruguay, and Paraguay — agreed on the terms of a free-trade deal that promised to be a blockbuster.

Since then, however, the deal has not advanced much — mostly because European countries with strong agricultural sectors have created many hurdles.

Lula is back in power in Brazil now, and he has treated ratification as a priority. But he, too, has his issues with the deal.

With geopolitical shifts, the encroachment of China, and internal Mercosur tensions looming larger, the deal seems to be facing a do-or-die moment.

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In this episode:

• Gabriel Cohen is a doctoral fellow at the Institute Barcelona d’Estudis Internacionals, a senior editor at Latinometrics, and a monthly columnist for The Brazilian Report.

Background reading:

• Listen to Episode #67: The deal between the EU and Mercosur, explained. We talked with economist Monica de Bolle, a senior fellow at the Peterson Institute for International Economics and the director for Latin American studies and emerging markets at Johns Hopkins University.
• The next few weeks could be crucial for getting the deal over the hump, writes Cedê Silva.
• Mercosur, the trade union between Brazil, Argentina, Paraguay, and Uruguay, has always struggled to reach true integration. Listen to Episode #174, in which we discuss a compromise to help the bloc stay united.
• Gabriel Cohen writes about what is really holding back South American integration. Spoiler: the barrier is far more basic than political ideology.

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• #diplomacy
• #europe
• #mercosur
• #trade