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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ADVICE

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.
INSIGHT

Geopolitics Trumps GDP Gains

  • Economically the growth effect is limited because current EU–Mercosur trade is small relative to other regions.
  • Yet Odendahl argues geopolitical diversification and supply‑chain resilience are the pact's real value.
INSIGHT

A Strategic Counter to US And China

  • The deal counters US and Chinese trade strategies by strengthening Europe–Latin America ties.
  • Odendahl frames it as a strategic response to rising economic coercion and protectionism.
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