Overview

• Mercosur foreign ministers finalized a free trade agreement with the European Free Trade Association, opening markets in Iceland, Liechtenstein, Norway and Switzerland.
• Under President Lula’s rotating presidency the bloc is diversifying toward Asia by deepening ties with Japan, China, South Korea, India, Vietnam and Indonesia.
• Argentina’s President Javier Milei threatened to pursue an independent free trade deal with the United States, testing Mercosur’s unanimous consent requirement.
• The bloc is preparing to implement its long-delayed EU free trade agreement once it clears ratification hurdles in member states facing environmental objections.
• Mercosur outlined six-month objectives on climate change, energy transition, combating organized crime and promoting technological development to guide its regional strategy.