While Europe continues negotiations with the Mercosur trade bloc, composed of Argentina, Brazil, Paraguay, and Uruguay, the United States is advancing its economic footprint in Latin America through new bilateral agreements. These efforts aim to reshape regional trade dynamics and counter growing Chinese influence in infrastructure, technology, and critical minerals. n nBrazilian President Luiz Inácio Lula da Silva had hoped for a free trade deal between the European Union and Mercosur to be finalized in December in Rio de Janeiro, calling it the ‘largest trade agreement’ globally. However, internal EU resistance, particularly from France and Hungary concerned about agricultural impacts, has stalled progress. n nIn contrast, Washington is accelerating deals with countries including Argentina, Guatemala, El Salvador, and Ecuador. According to political analyst Vladimir Rofinski from ICESI University in Colombia, these agreements enhance U.S. geopolitical positioning and offer Latin American nations greater strategic flexibility, access to technical cooperation, and opportunities for production diversification. n nChina currently leads in regional economic engagement. In Argentina, Chinese exports surged to USD 1.166 billion in October—a 241.4 percent increase year-on-year—while imports reached USD 1.862 billion, up 33.7 percent. The U.S. fell to fourth place in Argentina’s trade rankings during the same period, behind Brazil, the EU, and China. Latin American exports to China overall rose 7 percent, driven by higher sales of soybeans, meat, and metals like copper, according to a recent ECLAC report. n nThe U.S. benefits from lower tariff barriers on Latin American and Caribbean goods compared to key Asian partners, creating openings for regional exporters in sectors such as apparel, medical devices, and agriculture. Diana Luna from the Friedrich Ebert Foundation notes Washington employs a long-standing ‘carrot-and-stick’ approach, favoring countries that align on migration and security, such as Guatemala, El Salvador, and Argentina. n nThe Argentina-U.S. agreement signals stronger investment ties, particularly in pharmaceuticals, and aims to attract foreign capital to support President Javier Milei’s economic reforms. However, tensions may arise between U.S. trade terms and Mercosur rules, potentially forcing Argentina to choose between frameworks—an outcome that could disrupt regional trade and affect Brazilian market share, warns Brazilian international relations expert Marcella Franzoni. n nEuropean delays stem from excessive demands in negotiations, making U.S. bilateral deals more appealing due to their speed and tangible outcomes, Luna adds. n— news from DW
