“BRUSSELS -- European Union countries on Friday approved a trade deal with four South American countries, in a sign that President Trump's antipathy to free trade hasn't killed the rest of the world's hunger for global commerce.
The pact between the EU and the founding countries of the Mercosur customs union -- Argentina, Brazil, Paraguay and Uruguay -- is poised to become one of the bloc's largest free-trade accords. It is part of a European effort to curb economic reliance on the U.S. and China by boosting commercial ties with other countries.
The deal was approved by EU countries' representatives despite opposition from France and several other nations, EU diplomats said. The pact must be approved by the EU Parliament, which appears likely but isn't guaranteed.
"For Europeans, the finalization of free-trade agreements with new partners stands among the best responses to U.S. tariffs, growing protectionism and trade tensions with China," said Agathe Demarais, a senior policy fellow with the European Council on Foreign Relations.
The EU isn't alone in seeking to expand trade with other countries after Trump's return to office. The U.K. last year announced a trade deal with India and a trade-and-security pact with the EU and updated an existing agreement with South Korea. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a trade group with 12 members, is adding new members.
Officials from the European Commission, the EU's executive body, have said the bloc should pursue more agreements to help diversify its trade after Trump imposed steep tariffs on goods imported from trading partners.
Trade tensions with China also have pushed the EU to look for alternative sources of the raw materials. Some European officials have pointed to Brazil, in particular, as a valuable source for critical minerals.
But commission officials have struggled to win approval for the Mercosur deal from several EU member countries. While export-reliant Germany backs the pact, others raised concerns about opening European markets to agricultural imports from Brazil.
French President Emmanuel Macron said the agreement's economic benefits weren't enough to outweigh risks to farmers and European food security. France, Poland, Austria, Ireland and Hungary opposed the deal Friday, according to people familiar with the matter. Belgium abstained.
This past week, the commission offered to increase funding for farmers, and said it would propose suspending some of the bloc's tariffs on fertilizers. The bloc also previously agreed to set up so-called safeguards that could pause preferential tariff treatment for certain agricultural goods from Mercosur countries if there is evidence that imports are causing harm in the EU.
The agreement would cut tariffs on EU products such as cars and wine, while making it easier for beef and other agricultural goods from the South American countries to enter the bloc's market.” [1]
1. World News: EU Supports South America Trade Accord --- Mercosur deal aims to blunt U.S. tariff impact and curb reliance on China. Kim Mackrael; Hancock, Edith. Wall Street Journal, Eastern edition; New York, N.Y.. 10 Jan 2026: A9.
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