The Intelligence from The Economist Lowering the steaks: a Mercosur deal at last
28 snips
Jan 13, 2026 
Christian Odendahl, Economics editor for Europe at The Economist, breaks down the newly inked EU-Mercosur trade deal, explaining its long-awaited conclusion and its implications for global trade. Moeka Iida, a journalist focusing on Japan, discusses the troubling rise of anti-foreigner sentiment and its roots in immigration and public sentiment. Meanwhile, Hamish Clayton shares the inspiring story of Parkrun in the UK, a community initiative that's helping boost public health through inclusivity and non-competitive running.
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Big Trade Shift, Small Growth Impact
- The EU–Mercosur pact removes tariffs on about 90% of goods, phased over a decade, reshaping trade between 700m people.
- Christian Odendahl says it mainly shifts access to raw materials and eases trade for machinery and chemicals from Europe.
Farmers Blocked A Quarter-Century Deal
- Agricultural protectionism was the main stumbling block, especially from Poland and France's farming lobbies.
- Odendahl notes protected geographical names and small EU export shares made concessions politically fraught.
Pair Deals With Targeted Safeguards
- The EU used a qualified majority vote and negotiated extra safeguards to pass the deal despite opposition.
- Odendahl implies policymakers should pair trade deals with targeted subsidies to win political approval.