The EU-Mercosur trade agreement is finally happening @PetersonInstitute

Uploaded May 2026 | Updated September 2026, 1 week ago

After more than 20 years in the making, the interim trade agreement between the Mercosur countries (Brazil, Argentina, Paraguay, and Uruguay) and the European Union finally applies provisionally as of May 1. This creates a trade area with around 700 million consumers, facilitating investment, trade, and cooperation. In addition, it is a clear geopolitical signal that these two blocks want to deepen their ties through a transparent, legally binding agreement. What will the effects of the agreement be economically and politically? Why was it so hard to agree, and what comes next? Is this an example of "middle powers" coming together?

HOST

Cecilia Malmström
Nonresident Senior Fellow, Peterson Institute for International Economics (PIIE)

GUESTS

Nicolás Albertoni
Former Vice Minister of Foreign Affairs, Uruguay; Visiting Fellow, Georgetown Americas Institute; Fellow, World Trade Institute

Monica de Bolle
Senior Fellow, PIIE

Rupert Schlegelmilch
Former Director, Directorate-General for Trade, European Commission; Former EU Chief Negotiator for EU-Mercosur Trade Agreement

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