Uruguay’s President Yamandú Orsi said on Thursday that protectionist policies under US President Donald Trump are helping move the EU–Mercosur trade deal closer to reality.
Mercosur’s founding members — Argentina, Brazil, Paraguay and Uruguay — and the European Commission, speaking for the EU’s 27 member states, announced in December that negotiations for a treaty between the two blocs had concluded. But ratification remains an uphill battle.
Speaking after his return from the Community of Latin American and Caribbean States (CELAC) summit — which ended Wednesday in Honduras with calls for regional unity in response to Trump’s trade war — Orsi was asked whether rising US tariffs were speeding up the EU–Mercosur deal.
“I believe it is, that this is what’s happening,” said Orsi. He noted that he had discussed the issue with Brazil’s President Luiz Inácio Lula da Silva.
“We also spoke about it with Lula, who is very hopeful — or at least more hopeful than before — because I think Europe has little choice now but to lower its demands somewhat,” Orsi added.
Trump has said he wants to use tariffs to reshape the global economy. His goal is to bring factories back to the United States and pressure other countries into easing barriers to US goods.
On Wednesday, Trump stepped back from his threat to slap new tariffs of 20 percent on EU imports. But earlier tariffs on metals and cars remain in place, as does the baseline 10 percent customs duty applied to all goods entering the US.
The European Commission is currently conducting a legal review of the agreement reached with Mercosur and intends to submit a formal proposal to member states before the end of the northern summer. EU officials have said they aim to finalise the EU–Mercosur deal before the end of the year, despite internal divisions and some environmental concerns.
One sticking point has been a new EU law aimed at curbing deforestation by banning imports linked to the practice. The regulation will remain in place, but its enforcement has been pushed back until December 2025 — a move seen by some as an effort to smooth negotiations.
Meanwhile, Lula has also pushed to expand Mercosur’s global partnerships. Speaking during a visit to Tokyo, he called on the bloc to pursue a trade agreement with Japan as a way to counterbalance Washington’s growing protectionism. “We must strengthen integration, not fall into the trap of trade barriers,” Lula said earlier this week.
This week, Finland and Sweden voiced support for the EU–Mercosur deal, which would create a market of 700 million people. France, however, leads a group of EU nations opposing ratification, arguing that the pact would hurt European farmers.
– TIMES/AFP
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