After 25 Years, EU and MERCOSUR Agree on Trade Deal

The European Commission and the South American alliance mercosur (comprised of Argentina, Bolivia, Brazil, Uruguay and Paraguay) agreed to a free-trade agreement. After 25 years of negotiations, European Commission President Ursula von der Leyen today signed the trade agreement with the five mercosur states in Montevideo, Uruguay.

A major achievement: Prior to landing in Latin America, von der Leyen posted on X: “We have the chance to create a market of 700 million people. The largest trade and investment partnership the world has ever seen.”

A weakened France: The signing of the deal in Montevideo is only the first political step. The treaty still needs to be approved by the European Parliament, the Council of Ministers and the national parliaments. At least 15 national votes, representing 65 percent of the European Union population, are required for approval. France has been a major opponent of certain details in the deal, but its recent government crisis is weakening its ability to mobilize against it.

A decades-old forecast: The Trumpet and its predecessor, the Plain Truth, have long warned that an alliance between Europe and Latin America would be bad news for the United States. In 1962, the Plain Truth warned:

The United States is going to be left out in the cold as two gigantic trade blocs, Europe and Latin America, mesh together and begin calling the shots in world commerce.

Learn more: Read “America Is Being Besieged Economically.”