The global trade wars prompted by President Donald Trump´s protectionist actions are leading to a revival of interest in trade agreements between regions outside the United States. Trade is now more geopolitical than ever. Case in point: After more than 25 years of negotiations, the European Union has finally concluded a trade agreement with the four countries of Mercosur (Argentina, Brazil, Paraguay, and Uruguay), establishing a free trade area covering almost 800 million people.
Although a signing ceremony is set to happen in Brazil, the EU-Mercosur accord is almost, but not quite, a done deal. The signing will require decisions in the four parliaments of the Mercosur countries as well as approval by the European Parliament and a qualified majority of EU member states. Failing to sign it would be a serious blow to Europe´s desire to forge an independent geopolitical path at a time of rampant destructive trade fights.