Economy & Business - December 2025

For decades the South American customs union Mercosur was busier preventing its collapse than promoting trade, internally or abroad. Political infighting, economic crises and ideological differences led to inertia. High external tariffs, albeit riddled with exemptions, protected sometimes inefficient domestic industries, while no meaningful trade accord was reached. That now seems to be changing, at least in part. In the wake of Washington’s tariff shocks earlier in the year, Mercosur is advancing on trade deals with several significant economies.