Mercosur Races for New Trade Pacts Amid Global Shifts

Brazil aims for new Mercosur trade deals after an EU agreement, driven by global tariff threats. Key prospects include the European Free Trade Association and UAE, with other discussions ongoing in Asia and Canada. Mexico and Norway are also exploring diversified trade relationships.

Brazil is pushing the Mercosur trade bloc to accelerate its efforts in securing new free trade deals following a recent agreement with the European Union. This move comes as global tariff threats loom, prompting countries to explore diverse export options, according to diplomatic sources.

Key targets for Mercosur's upcoming negotiations are non-EU countries within the European Free Trade Association and the United Arab Emirates. Singapore's agreement with Mercosur this year is awaiting official ratification. Notably, the potential deals signal a renewed vitality for the bloc, which includes South American heavyweights Brazil and Argentina, among others.

The urgency is echoed by Norway, which is prioritizing an agreement with Mercosur by 2025, and the UAE's interest in deepening Middle Eastern-Latin American commerce within the next year. Meanwhile, Mexico is diversifying its trade strategy beyond the USMCA, amid potential U.S. tariff threats from President-elect Trump, aiming to reinforce its ties with Mercosur.

(With inputs from agencies.)