The Globalist Europe’s relationship with South America on the line in Mercosur trade deal
Jan 9, 2026
Ernesto Talvi, the former foreign minister of Uruguay and a senior fellow specializing in Latin American policy, dives into the complexities of the EU–Mercosur trade deal. He highlights the critical moment for Latin America as France's agricultural protests threaten the agreement. Talvi discusses the implications of environmental standards and geopolitical shifts, contrasting models from Europe, the US, and China. With Italy's pivotal role and its domestic politics influencing the outcome, the stakes couldn't be higher for both regions.
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Deal Is A Broad Institutional Framework
- The EU–Mercosur deal is a comprehensive institutional umbrella covering trade, standards and cooperation across 20+ chapters.
- Ernesto Talvi says it binds high European labour and environmental rules to Mercosur exports and governance.
Italy Has Become The Kingmaker
- Italy emerged as the swing vote because the qualified-majority math left it as kingmaker.
- Michele Barbaro explains Italy was quietly won over by Brussels concessions despite public reticence.
Strong Environmental And Labour Rules Included
- The agreement includes strict environmental and labour provisions, including Paris compliance and deforestation rules.
- Talvi says civil society mechanisms and banned pesticides are part of enforcement to reassure Europeans.
