It wasn’t on the agenda, but everyone talked about it. A final agreement between Mercosur, made up of Argentina, Brazil, Paraguay and Uruguay, and the European Union is on the verge of reaching a final agreement ahead of this Sunday’s CELAC-EU summit in Santa Marta, Colombia. Both parties used this as an example of resistance to the new world order promoted by Donald Trump in the White House. Unilateralism and its most obvious manifestation, the Republican-initiated tariff war, are the flip side of the trade cooperation that accompanies the free trade agreement between the two blocs.
The EU and Mercosur signed a political agreement in December 2024 after more than 25 years of negotiations. The European Commission adopted the agreement in 2025. The agreement has not entered into force and is awaiting unanimous ratification by the 27 EU member states. The main European proponent is Spain, which now also includes Germany, and says the treaty offers an alternative to war with President Trump and China over control of international trade. But the ratification process has been delayed by resistance from France, which sees the agreement as a threat to farmers.
Last Thursday, French President Emmanuel Macron showed signs of easing tensions in Brazil during his participation in the COP30 climate change summit. He did not provide further details, but said he was “quite positive” about the possibility of ratification of the deal, but vowed his country would remain “vigilant”. This change has sparked expectations on both sides of the Atlantic and made itself known in Santa Marta this Sunday. The most energetic was Brazilian Lula da Silva, who along with Spaniard Pedro Sánchez was one of the main promoters of the agreement.
“The agreement between Mercosur and the EU proves that it is possible to strengthen multilateralism on the trade front as well. With this measure, we will unite two of the world’s largest free trade areas, creating a market with a population of 718 million and a GDP of $22 trillion,” Lula said in a speech to other leaders in attendance. Santa Marta.
European Commission Vice-President Teresa Rivera has previously spoken along similar lines. He said the EU’s goal was to “update the[current trade]agreement with Mexico by 2026 at the latest and sign the Mercosur agreement in December.” “Latin America will open the door to the European Union. Europe will choose cooperation rather than isolation,” he warned.
Mr. Lula’s attendance at the Selac-EU summit, which was confirmed at the time, had much to do with his intention to strengthen his position as Mr. Trump’s alternative. Planalto Palace officials said it was disrespectful to make a mistake when “we have almost reached an agreement with the EU”. “This was a statement of intent to the EU that we hope to sign,” they added. Mercosur intends to settle the matter on December 20, when it holds its biannual presidential summit in Rio de Janeiro. Paraguay becomes president tentative It will be part of the bloc until June, but its replacement Uruguay will undoubtedly be the first to commit to the deal.
Uruguay’s Foreign Minister Mario Lubetkin said: “We can concretely work on some ideas that both sides agree on in preparation for when we are given the Mercosur presidency from the second half of 2026.”
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