Opinion
Implications of the EU–Mercosur free trade agreement from a Latin American perspective
On December 6, in Montevideo, Uruguay, and after 25 years of negotiations, the Southern Common Market (Mercosur) and the European Union (EU) signed a Letter of Intent to reach a Free Trade Agreement (FTA), a requirement prior to the Treaty, through which each Member State will establish which products will have their tariffs affected and which will not.
The Mercosur-EU FTA includes chapters on market access, the elimination of tariff and non-tariff barriers, investment promotion, intellectual property protection, and trade facilitation, among other topics.
According to a report from the Spanish Ministry of Foreign Affairs, the EU will liberalize 82% of agri-food imports from the Mercosur bloc and will impose tariff quotas for the most sensitive products. The demanding European food safety standards will be maintained, and the protection of 357 Geographical Indications (Denominations of Origin) of foods and beverages in the European Union will be guaranteed.
For its part, Mercosur will eliminate -in a period of 10 years- tariffs on 90% of its imports from the EU. Those sectors that have a higher tariff will benefit more, such as automobiles, capital goods, chemical products, pharmaceutical products or textiles and footwear.
It is important to highlight that this Mercosur-EU Free Trade Agreement has detractors, the most important of them: the French government and French farmers. In fact, France’s parliament rejected the agreement. Likewise, Poland, Austria and the Netherlands are against the FTA with Mercosur.
On the other hand, environmental organizations fear that as a consequence of the Free Trade Agreement there will be an increase in deforestation in the Amazon due to the expansion of agricultural activities; which also endangers indigenous communities in regions where land is in conflict or dispute between indigenous peoples and agribusiness.
The Mercosur-European Union Agreement represents the largest free trade area in the world.
A first look
At first glance, a signing of a free trade agreement (FTA) between Mercosur and the European Union (EU) would lead one to think that an increase in bilateral trade should be achieved, since:
1) The FTAs will eliminate tariff and non-tariff barriers, facilitating the exchange of goods and services between the member countries of both organizations.
2) Mercosur companies will have access to a broader market in the European Union, which will allow them to expand their operations and increase their exports.
3) The elimination of trade barriers can attract foreign investors to the region, which can benefit the economy and generate employment and therefore increase the Gross Domestic Product (GDP) of Mercosur members.
However, there are certain risks to consider such as unfair competition, Mercosur companies, especially small and medium-sized companies, may face unfair competition from European companies, which have or may have competitive advantages in terms of technology, capital and size. It is well known that Europe has greater economic power.
In 2022, the EU exported 27.7% of global exports and imported 29.6% of global imports. In the same period, Mercosur exported 1.90% of global exports and imported 1.59% of global imports. The European figures are logically higher, because their organization houses more countries, while the Latin American organization only consists of four full and active members (Argentina, Brazil, Paraguay and Uruguay).
In addition, some sectors of the Mercosur economy, such as manufacturing, may be affected by competition from cheaper and higher quality European products.
Likewise, the opening of markets can make the Mercosur economy become more dependent on the European Union, which can limit its economic and political autonomy.
BRICS and Brazil
This agreement is also carried out within a global dynamic, where multilateralism gains greater strength. Just as the BRICS have allowed the incorporation of countries without the same level of economic development as the founding countries (Brazil, Russia, India, China, South Africa), now the European Union has assumed the same position and is moving forward in adding relations with other blocks. . The EU started with Mercosur.
These times are very similar to when the First and Second World Wars broke out, there were power struggles because there was no single established power and when the wars ended the world leaders met in meetings such as the one in Yalta, where zones of influence were established. Until now Europe and the United States. They seem to be claiming this region – like Africa – as their area of influence. However, it is important to take into account the growing presence of China in the region, which is the main trading partner of many Latin American and Caribbean countries, including Mercosur members such as Brazil, Argentina and Uruguay.
In the case of Brazil, with a president like Lula da Silva who has been criticized by pro-free market economic experts for his contractionary fiscal policies, with this FTA agreement, a transcendental shift in its development model can be seen. This political action brings him closer to European imperialism and paves the way for the American empire. A fact that is added to his non-participation in the BRICS summit. All of Lula’s actions are completely contradictory to his past political behavior that sought Latin American integration and distanced himself from foreign imperial pretensions in our region.
Energy-wise, Brazil plays an important role for Latin America, being the leading oil producer. And according to energy trends from the Organization of Petroleum Producing Countries (OPEC), this country will double its production level by 2040. This country’s oil policy will become more important by 2030 when the US production level drops, and It will be necessary to increase supply and lower prices worldwide. Given Lula’s actions, the danger is that he signs an FTA with the United States and greater participation by American transnationals, because the field designs are carried out for long periods, up to 20 or 25 years. Lula’s oil policy will have significance in the future of his country and the region.
Last Thoughts
In a trade negotiation like this, first of all, it must be defined which countries have the greatest economic muscle for investment. In the case of Latin America, the region has been experiencing a process of economic slowdown; many of its countries already have fiscal policies of market opening to encourage foreign investment. However, the essential question to measure the effectiveness of this agreement is to know if Europe has the economic investment capacity that can generate the necessary production in these Mercosur member countries, to accelerate economic growth in these nations.
A fact that is further from reality, European countries finance Ukraine in the face of an open war conflict with Russia, which in turn is generating great losses due to the destruction of Nord Stream II and Nord Stream I, which stopped the gas supply. natural gas in the region and forced them to import liquefied gas, which is more expensive.
Likewise, the loss of an essential product such as wheat for the European diet, since Russia and Ukraine were the main and almost the only ones in the production of this item. Similarly, Europe is financing war conflicts in the Middle East. This symbolizes that this union between Mercosur-EU does not have (and probably will not have) much economic impact in the South American region.
Opinion
Chaos and reckoning on the streets of France
The streets of France have turned into a stage not merely for anger against the government, but for a deep-seated mistrust of the state’s approach to security. The blurring of the line between peaceful demonstrators and looters, lingering questions over police conduct, and the media’s refocusing on the immigration debate are bringing the country to the brink of a political reckoning far deeper than a routine public-order crisis.
In France, a government does not have to wait for an electoral defeat to lose its legitimacy. Sometimes, slogans chanted in a public square, tear gas fired down a boulevard, crowds penned in at the exit of a cordoned-off street, and testimonies of unhindered looting in shops only hundreds of metres away suffice to expose just how fragile the bond of trust between state and society has become.
Events in Paris on Saturday, 17 October point to precisely such a political fracture. Planned demonstrations with the participation of student unions, trade unions, and the Yellow Vests were marked throughout the day by police crackdowns, disputes over march routes, looting in the city centre, and widespread criticism of the government’s perceived inadequacy. The scene that emerged by evening suggested that France was grappling not merely with an issue of public order, but with a burgeoning crisis of confidence regarding the state’s impartiality and political motives.
Whom does the state permit to take to the streets, whom does it obstruct, and which forms of violence does it intervene against, and to what degree? The answer to this question may prove decisive in understanding France’s current political impasse.
The shadow of 17 October 1961
It is impossible to view the date of these demonstrations as a mere coincidence on the calendar. On 17 October 1961, a peaceful demonstration in Paris supporting Algerian independence was brutally crushed by the French police. Scores of people were killed, with some demonstrators drowned after being thrown into the River Seine. The event remains etched in memory as one of the darkest chapters in France’s colonial history and state-sponsored violence.
Sixty-five years later, as police interventions, youth rage, and the state’s stance on the right to protest are debated once again on the streets of Paris on 17 October, the resurgence of this historical memory was inevitable.
This memory may hold a distinct meaning, especially for French citizens of North African descent. Yet it would also be a mistake to reduce all the young people taking part in the demonstrations to a single identity, immigrant origin, or political motivation.
To what extent has the French Republic truly reckoned with the legacy of its colonial past and the relationship its security apparatus maintains with diverse segments of society?
Looters on the streets, where are the police?
Individuals dressed in black and associated in the public eye with the Black Bloc broke into shops at various locations, damaged businesses, and engaged in looting.
While peaceful demonstrators marched under a heavy police presence, fierce criticism arose that looting in certain areas had been allowed to unfold unchecked.
It is striking that while 14,000 police officers were deployed across the capital during the Pope’s visit to Paris, only 10,000 officers in total were assigned across the whole of France for the demonstrations of 17 October.
To which areas were police resources allocated? Had intelligence services assessed the risk of looting beforehand? While a robust security presence flanked the routes of peaceful marches, why was the same effectiveness not demonstrated in safeguarding commercial districts?
The deployment of elite units trained to quell urban unrest, such as CRS 8, does not resolve these questions. On the contrary, the failure to contain the incidents despite the presence of specialized units calls the quality of planning and coordination into question.
A political reckoning extending from Marseille to Limoges
The debate in Paris soon reverberated across the country’s other cities. In a televised address, the socialist mayor of Marseille stated that he had requested police reinforcements from the government, yet the units dispatched fell short given the scale and requirements of the city.
The mayor’s most striking allegation was that while looters stormed Marseille City Hall, the Hôtel de Ville, police officers stood roughly 200 metres away and failed to intervene. Stating that he possessed security camera footage, the mayor affirmed that he would await the scrutiny of a Parliamentary Commission of Inquiry and demand an explanation from the government.
The mayor of Limoges likewise issued what amounted to an ultimatum to the government, demanding the reconstruction of the torched town hall and the full reimbursement of costs. According to the mayor, the government had failed to protect a public building and neglected to provide the police with the necessary resources and backing.
These statements emerging from two distinct cities demonstrate that a new confrontation over security policy has arisen between local authorities and the central government. How security resources are allocated, which risks are prioritized, and whether the warnings of local administrations are heeded must all be brought to light.
The deepening scrutiny over the administration’s stance was compounded by President Emmanuel Macron’s refusal to accept the resignation tendered by Interior Minister Laurent Nuñez. The rejection of the resignation raises the question of whether the executive aims to preserve the chain of accountability, or fears that a political reshuffle would only exacerbate the crisis.
In either case, the government faces a crisis of trust.
An eight-minute speech and unanswered demands
Macron’s roughly eight-minute televised address failed to meet expectations regarding the political dimensions of the crisis. The president announced that he would meet with student unions and that the prime minister would engage with political parties, yet he presented neither tangible decisions nor a comprehensive political roadmap.
Education spending, police violence, the Palestinian cause, anti-fascism, and backlash against the Macron administration appear to have ceased being disparate issues in the eyes of the youth.
To be sure, the true strength of a state lies not in silencing its people and streets, but in addressing legitimate demands. It must not be forgotten that institutions unable to adapt and change are destined to break.
Opinion
What is scale in foreign policy? How is success measured in foreign policy?
By its very nature, foreign policy feeds into and draws nourishment from numerous, disparate, and varied fields. It is a domain with manifold and diverse inputs. For foreign policy is examined alongside a broad array of subjects, ranging from geography to history, economics to intelligence, and military might to public diplomacy, commonly termed soft power elements.
The capacity of the state, that is, the scale of the state, or in other words the aggregate of its elements of power (namely political, economic, military, and soft power components), is decisive in foreign policy. Geography is decisive in foreign policy. Commercial relations are decisive in foreign policy. Energy dependence on another country or countries, if present, is decisive in foreign policy. Foreign policy cannot be conducted in spite of these four factors.
There is more. A country’s capacity, its scale, does not increase overnight, from one day to the next. It requires planning. It requires national consensus. It requires time. It requires preparation. Nor are these enough. The regional and global environment, the conjuncture, and the international plane must also allow for it. The stance of allies and adversaries is, of course, also important.
For the international environment is, by its nature, complex. It is an environment rife with contradiction, turmoil, conflict, and tension. To draw an analogy, the person in the driver’s seat of foreign policy is not a motorist speeding along the road as they please. There are things they must not forget, rules they must obey, red lights, vehicles speeding up from behind, a truck moving ahead, and a heavy vehicle hurtling toward them from the opposite direction.
Success in foreign policy does not arrive simply because a politician we like has become foreign minister. For a foreign minister is only as effective as the power, capacity, and weight of their country. One must accept this plain truth.
Moreover, there are simple, straightforward questions that reveal whether foreign policy, which some find deeply complex and inscrutable, is successful or not.
There are undoubtedly ways to measure the effectiveness, prestige, influence, and success of foreign policy.
For instance, the number of countries that respect a passport, how many countries can be visited visa-free, and how many countries impose visa requirements and grant those visas only with great difficulty are important indicators of a country’s standing.
Let us take ourselves as an example. Which countries require a visa for the Turkish passport? Which ones do not? Is it easy for our citizens to obtain visas for the countries they primarily wish to visit?
Let us give another example from the Turkic world.
On the Cyprus issue, which we regard as a national cause across government and opposition, right and left, Kemalist and Milli Görüş adherents alike, how many countries have we succeeded in having recognize the TRNC? Why do the Turkic states (Azerbaijan, Kazakhstan, Kyrgyzstan, Turkmenistan, Uzbekistan) not recognize the TRNC? Far from recognizing the TRNC, how do the Turkic states in Central Asia (Turkistan) explain to Ankara their developing relations with the Greek Cypriot Administration of Southern Cyprus, which Türkiye does not recognize, their appointment of ambassadors, and their recognition of Southern Cyprus as the island’s sole legitimate government?
We must also ask this question, of course: What is the state of Türkiye’s bilateral trade with the Turkic states?
Let us give an example of the relationship between foreign policy and big capital.
In which countries are big capital circles, among the greatest supporters of the ruling bloc, winning major tenders?
In our country, across both ruling and opposition ranks, there is a political party order that supports Türkiye’s EU membership. Yet how much progress has been made on EU membership?
Why is US President Trump not keeping the promises he made to Türkiye at the NATO summit held in Ankara a few months ago?
How many contracts has the new regime in Syria, the al-Sharaa administration, awarded to Turkish companies for the reconstruction of its country?
Has the government in Libya that Türkiye supports paid the money owed to Turkish construction firms, outstanding for years?
How does Qatar, with whom our relations are very good, explain its developing ties, energy agreements, and joint military drills with Greece and the Greek Cypriot Administration, disregarding our sensitivities?
Who is the addressee of the harsh statements used in recent weeks by Azerbaijan, which we view as “two states, one nation”? To what extent does Azerbaijan share Türkiye’s policy on Israel? What does Türkiye think about the scale, depth, and intimacy of Azerbaijan-Israel relations?
These questions can certainly be multiplied.
Yet without taking into account the scale of the state and observing the criteria for measuring foreign policy, no sound assessment can be made.
Opinion
The era of corridor alliances in the Middle East
In the Middle East, war is no longer waged merely to seize territory. The true contest turns on who will control the energy pipelines, trade routes, ports, and railways of tomorrow. Missiles may strike cities today, but the maps of the future are being drawn through transport and energy corridors.
In this context, interpreting Türkiye’s presence in the Mecca Alliance solely as military support for Saudi Arabian security remains incomplete; it fails to explain why two states that viewed each other with mutual suspicion until recently would take steps toward a cooperation close enough to constitute a shared destiny.
Alongside Saudi Arabia’s existential motives, Ankara’s participation in this alliance is anchored in a profound geopolitical foundation: to position itself within, and if possible at the very centre of, the Middle East’s reconfigured energy and transport corridors.
Today, it cannot be said that Riyadh and Ankara see eye to eye on every regional issue. The threat perceptions and priorities of the two countries do not, quite naturally, entirely coincide. On the geopolitical chessboard, partnerships do not always arise from identical agendas. When reasons are sufficiently compelling, particularly existential ones, they can override political differences and enable common ground along the same strategic path.
A new war of corridors unfolds in the Middle East
On one side lies IMEC (India-Middle East-Europe Economic Corridor), planned to extend from India through the United Arab Emirates, Saudi Arabia, Jordan, and Israel to Europe. On the other stands the Development Road, which aims to link the Persian Gulf across Iraq to Türkiye, and onward to Europe.
These two undertakings are, of course, far more than mere transport projects. They represent two divergent geopolitical answers to where the future flow of trade and energy between Asia and Europe will traverse; for Türkiye, this issue is of vital importance.
If a corridor system taking shape to Türkiye’s south, beyond Ankara’s orbit, becomes permanent, Türkiye could forfeit not only an economic opportunity but also a substantial portion of its strategic centrality in the Middle East. It is through this prism that the Mecca Alliance must be evaluated.
Türkiye’s seat at the same table with Saudi Arabia signifies more than military solidarity. Riyadh and Ankara must sit together to avoid exclusion from the region’s emergent security and economic architecture, for the security of a corridor and the corridor itself are no longer separate matters.
The Strait of Hormuz, the Red Sea, the Bab al-Mandab, and the Suez Canal are links in the very same chain. A security crisis in one directly impacts the others. While the vulnerability of Hormuz makes alternative export routes for Gulf oil indispensable, instability across the Red Sea heightens the strategic cost of Suez.
Saudi Arabia’s alternative pipelines connecting its eastern oil fields to Red Sea terminals are therefore not merely energy infrastructure; they are strategic bypasses mitigating dependence on Hormuz.
For Türkiye, the Development Road fulfills the same function across a broader geography. Stretching from the Persian Gulf through Iraq to Türkiye, and from Türkiye into Europe, this artery possesses the potential to forge a new overland backbone connecting the Gulf to the Mediterranean and Europe. As security concerns in the Red Sea mount and the vulnerability of Suez deepens, the value of this route rises accordingly.
The Hejaz Railway: Revived once again
The return of the Hejaz Railway to the regional agenda signifies far more than mere nostalgia. Once linking Istanbul to Damascus, Amman, and the Hejaz, the railway served as one of the primary transport and logistical arteries of the Ottoman geography.
Reviving the idea of the Hejaz Railway could become the emblem of Türkiye’s drive to reimagine its historical transport connections between the Gulf, the Hejaz, and the Levant through modern rail, energy, and logistics networks.
The objective here is not to restore the past, but to transpose the strategic logic of that historical geographical linkage into the twenty-first century. For this reason, Türkiye’s role in the Mecca Alliance and the resurgence of the Hejaz Railway project must be viewed as components of the same overarching picture.
Corridors do not consist solely of energy pipelines. Railways, ports, highways, electrical interconnectors, logistical hubs, and security architectures are all facets of the same geopolitical grid, and safeguarding these networks requires political alliances.
Herein lies the strategic significance of Saudi Arabia and Türkiye sitting at the same table in Mecca, even at a juncture when their views on Syria diverge.
Ankara and Riyadh do not need to agree on every subject. Yet neither wishes to see the new map of the Middle East drawn to its detriment. Türkiye’s aim is not to build an anti-bloc against any specific country alongside Saudi Arabia; rather, the goal is to avoid exclusion from the future energy and trade systems of the Middle East, while securing a decisive voice in establishing their security architecture.
Hence, for Türkiye, the Mecca Alliance is far more than a simple defence pact. Securing the Development Road, shielding Gulf energy corridors, stabilising the Red Sea, rethinking connections across the Hejaz and the Levant, and bolstering trade corridors reaching Europe all intersect within this single strategic equation.
In this equation, Türkiye’s foremost advantage remains its geography. Ankara sits at the northern terminus of the overland routes linking the Gulf to Europe; within NATO; and at the crossroads connecting the Black Sea, the Caucasus, the Eastern Mediterranean, and the Middle East.
Will Türkiye become one of the powers shaping the Middle East’s energy and trade architecture over the coming decades, or will it be reduced to a mere transit state traversed by routes designed by others? That question defines the true strategic significance of the Mecca Alliance for Ankara.
In the Middle East of tomorrow, it will be impossible to separate the corridor carrying energy, the security framework protecting that corridor, and the alliance constructing that security framework.
Whoever controls the corridor shapes commerce. Whoever guarantees the routes through which trade flows holds sway over the regional balance of power. This is the true dimension of the contest currently underway in the Middle East.
A succession of distinct and largely mutually exclusive ambitions are competing for dominance in the current climate: India’s linkage to Europe, the Gulf’s new economic horizons, Saudi Arabia’s alternative energy routes, the security crisis in the Red Sea, the strategic weight of Hormuz, and Türkiye’s aspiration to open outward to Europe via the Development Road. Ironically, perhaps, the conflict that will decide which corridor underpins global stability has already begun, and it will likely continue spreading to new fronts. Regrettably, the fires in our region appear poised to intensify long before they abate.
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