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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INSIGHT

French Farmers Drive Opposition

  • France opposes the deal mainly because its influential farmers fear competition and political backlash.
  • Michele Barbaro says Macron risked political suicide if he pushed it through against farm protests.
INSIGHT

Deal Is Trade First, Signal Second

  • Europe’s push is partly about trade but also about showing strategic relevance beyond the US.
  • Michele Barbaro says manufacturing winners and agricultural losers explain differing national stances.
INSIGHT

UAE Backs Southern Separatists In Yemen

  • The UAE-backed Southern Transitional Council and its leader, Aidarus al-Zubaidi, seek southern autonomy and control of ports.
  • Inzimam Rashid says the UAE focuses on influence in the south, diverging from Saudi aims to preserve Yemen's unity.
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