EUMI

The shifting world scenario is widely acknowledged by various stakeholders across the globe—governments, politicians, policymakers, scholars, and other relevant actors. In this context, three crucial challenges must be addressed due to their significant impact on both the European Union and Mercosur: the 2008 economic crisis, the COVID-19 pandemic of 2020–2021, and the rise of China as a relevant geopolitical presence in both regions.

Firstly, the global crisis that began in 2008 had a profound impact on both regional blocs, exacerbating inequalities among countries. This crisis reinforced two interconnected processes: on one hand, intense questioning of the role of the State, especially its social dimension; on the other hand, the noticeable rise of radicalized party politics.

Secondly, the global spread of the coronavirus further intensified the aforementioned issues. This was not only due to the restrictions imposed by various governments (primarily to prevent the spread of the virus and save lives), but also due to the polarized responses within political systems. These dynamics added pressure to an already complex international order, fueling critical views against multilateralism and cooperation among nations.

Thirdly, a clear pragmatism now defines international relations, prioritizing regionalism over multilateralism in the post-pandemic world. The growing influence of China on the global stage exemplifies this shift, challenging the established Transatlantic hegemony of the EU and the United States.

In this complex international landscape, it is crucial to consider soft power as a strategic tool to promote interests through cooperation, diplomacy, persuasion, mutual understanding, and shared values—as theorized by Professor Joseph Nye Jr. in the late 1980s. In this regard, the regional integration process between the EU and Mercosur aims to build the world’s largest free trade community by connecting a diverse range of actors, cultures, industries, and nations.

Considering the historical background of EU–Mercosur integration, it is important to note that initial negotiations began 26 years ago. This long journey has involved significant economic and political challenges and opportunities that have shaped both regional blocs.

Despite this, from the Rio Summit in 1999 to the Buenos Aires announcement in 2019, the strategic EU–Mercosur Agreement has experienced numerous advances and setbacks. These include the Lisbon Summit and suspension of negotiations in 2004, the Madrid Summit and renegotiations in 2010, alternating political trends in South America and the U.S. (from Obama to the first Trump administration), and the 2019 G20 summit in Argentina, which resulted in a trade agreement that still requires ratification by all involved national parliaments.

In the wake of the COVID-19 crisis and the following post-pandemic years, the strategic agreement between the EU and Mercosur came under renewed scrutiny. Since 2019, the partnership has been widely debated by various stakeholders from both continents, including political bodies, parties, NGOs, and parliamentarians. Key concerns include tariff negotiations, the impact of a broader product range on national production sectors (such as European agri-food industries and South American SMEs), and climate change policies.

With the advent of a second Trump administration, it will be important to observe the evolution of foreign policies within both regional blocs, particularly in light of the changing global landscape that the U.S. seeks to influence.

This relevance extends beyond the U.S.–China tariff war to include the European situation in Ukraine and ongoing debates over the future of NATO. Additionally, the rapid rise of (re)emerging middle powers such as the BRICS group and Australia underscores the growing multipolar nature of global politics.

Consequently, this is the context that must be taken into account when analyzing the Strategic Partnership Agreement between the EU and Mercosur today.