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LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

January 27, 2026

Is the Mercosur-E.U. Trade Deal at Hand or Under Threat?

The European Parliament (pictured) voted last week for a legal review of the just-signed free trade agreement between the European Union and South America’s Mercosur trade bloc. // File Photo: Mehr Demokratie via Flickr CC BY-SA 2.0.

Q

  • After 25 years of talks, the European Union and South America’s Mercosur bloc reached an agreement on a free trade agreement. The deal, which was formally signed on Jan. 17 in Paraguay, cuts nearly all trade tariffs in a market of 700 million people. However, four days later, the European Parliament voted for a legal review of the pact by the E.U. Court of Justice, which could delay or derail the deal. What would be the economic impact of the E.U.-Mercosur trade deal? Who are the main winners and losers from the deal? What will result from continued opposition to the trade accord, including from French and Polish agricultural lobbying groups, who argue the deal threatens local farmers by opening the door to unfair competition?

A

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.
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Diego Arria
Director,
Columbus Group

Merike Blofield
Professor of Political Science,
University of Hamburg

Devry Boughner Vorwerk
CEO,
DevryBV Sustainable Strategies

Joyce Chang
Global Head of Research,
J.P. Morgan

Marlene Fernández
Corporate Vice President for Gov’t Relations,
Arcos Dorados (McDonald’s)

Peter Hakim
President Emeritus,
Inter-American Dialogue

Donna Hrinak
Director,
Adtalem Global Education

Jon E. Huenemann
Council Member,
GLG Inc.

James R. Jones
Chairman,
Monarch Global Strategies

Craig Kelly
Senior Director,
Int’l Gov’t Relations,
Exxon Mobil

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

John Maisto
Director,
US Education Finance Group

Nicolas Mariscal
Chairman,
Grupo Marhnos

Thomas F. McLarty III
Chairman,
McLarty Associates

Beatrice Rangel
Director,
AMLA Consulting

Ernesto Revilla
Head of Latin American Economics, Citi

Gustavo Roosen
President,
IESA

Andrés Rozental
President, Rozental &
Asociados

Shelly Shetty
Managing Director,
Sovereigns, Fitch

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