A Latin American perspective on the EU-Mercosur agreement

By Deliana Paggi

The signing of the agreement between the European Union and Mercosur closed the year 2024. In the following weeks, articles and opinion posts discussed the potential consequences of the deal.

But how was the news perceived on the other side of the Atlantic Ocean?

I was surprised to find an already familiar opposition of views provided by Latin America’s History Professor Loris Zanatta: He reads the events of contemporary Latin America as a continuous battle between a liberal and organic vision. The first one aims to modernise the region according to the principles of liberal economics. The second one perceives the region as a unique body that must succeed independently.

It seems clear how current perceptions are still shaped by these traditions. 

The supporters of the agreement see it as a great opportunity for Mercosur to assert itself economically and politically on the international stage. But also, to revitalise the internal integration process, which seems to have been blocked for years. As El Clarin, one of the leading Argentinian newspapers, writes: "After its successes [..] Mercosur has run out of steam. Intra-zone trade has been declining since 2011, its institutions are discredited […]”.

On the other hand, the deal is accused of being another example of neocolonialism: many argue that gains will be asymmetric. The final text seems to ignore the obvious disparity of position from which the economies of the two parts start.

Even if not in the classical sense, the intrinsic tension between the two worldviews remain present. Can this agreement be an opportunity for Mercosur, or must we resist another attempt by a European power to exploit distant land?