Historic EU-Mercosur Trade Pact: A Shift in Global Alliances

The European Union and South America's Mercosur finalized a mammoth trade deal after 25 years of negotiations. Analysts suggest Trump's tactics may have hastened the agreement as South American nations seek stronger ties outside U.S. influence, with China and Europe increasingly dominating regional trade and diplomacy.

A significant trade agreement has been reached between the European Union and Mercosur, South America's largest economic coalition, comprising Brazil, Argentina, Paraguay, and Uruguay. Experts say this development indicates the limits of the Trump administration's tactics in South America.

While the U.S. influence wanes, the EU-Mercosur deal aims to strengthen ties amid growing trade with China. Analysts propose that Trump's aggressive policies may have inadvertently spurred the completion of this long-stalled negotiation.

With the Trump administration's focus on unilateral moves, the EU-Mercosur pact could lead to more regional trade agreements, signaling a trend towards multilateralism despite U.S. reluctance. Observers note a shift as Latin American nations align with established global norms, sidestepping U.S. pressures.

(With inputs from agencies.)