'Not just trade': The EU-Mercosur megadeal
dw.com • • world
Key Points:
- European Commission chief Ursula von der Leyen is set to sign the EU's largest trade deal with South America's Mercosur bloc, creating one of the world's biggest free trade zones including Brazil, Argentina, Paraguay, and Uruguay.
- The deal aims to strengthen the EU's political cooperation and economic resilience amid global uncertainties, while providing increased access to critical minerals from Brazil to reduce reliance on China.
- Germany's auto industry stands to benefit from new markets in South America, although the pact faces strong opposition from EU farmers, climate activists, and notably France, which remains skeptical over agricultural impacts.
- The agreement reflects a broader EU strategy to diversify trade partnerships beyond traditional markets like the US and China, signaling a shift in global trade dynamics and increasing competition from Asian
