The EU-Mercosur deal shows what the US is leaving behind

This past weekend, the European Union signed a comprehensive free trade agreement with the Mercosur bloc comprising Argentina, Brazil, Paraguay, and Uruguay. This marks the culmination of more than a quarter-century of negotiations. When fully implemented, the pact will create one of the world’s largest free trade zones, encompassing more than 700 million people.

At a moment when the United States is retreating into tariffs, trade threats, and ad hoc deals shaped by President Donald Trump’s sensibilities, the rest of the world is pursuing openness through durable, rules-based agreements. Unless the Trump administration soon reverses course, the U.S. will bear the economic and geopolitical costs of that divergence for years to come.

The scope of the EU-Mercosur agreement is impressive. Mercosur eliminates duties on 91% of EU exports, including tariffs