The European Union is pushing to finalize a trade agreement with South America's Mercosur bloc, calling it a strategic move as U.S. tariffs disrupt global markets. France, previously hesitant, is now engaging with key EU members to advance negotiations.

The European Union is accelerating efforts to secure a trade deal with Mercosur, citing growing uncertainties from U.S. tariffs. An EU spokesperson emphasized the deal’s potential, stating, “We will be investing a lot of time and energy with member states to finalize the deal”. The move comes as the U.S. under President Donald Trump imposes new tariffs, prompting the EU to diversify trade partnerships.

France, which had previously resisted over agricultural concerns, hosted a meeting with 10 EU nations to discuss the agreement, signaling a possible shift in stance. The Mercosur bloc—comprising Brazil, Argentina, Paraguay, and Uruguay—represents one of the world’s largest economic zones outside the EU, with strong agricultural and industrial sectors.

Talks between the EU and Mercosur have stretched over two decades, hindered by disputes over farm subsidies, environmental standards, and market access. A deal would mark one of the EU’s most significant trade agreements, covering a market of nearly 800 million people.