Global rivals hover as EU stalls on Mercosur deal

EU-Mercosur talks have dragged for over 26 years

Brazil's President Luiz Inacio Lula da Silva said Mercosur will 'continue working with other partners' as the EU stalls on a deal. Picture: Leon Neal/PA 

As the European Union struggles to complete a trade deal with Mercosur, competitors eyeing South America’s consumer market and vast mineral resources are taking note.

Spurred by Donald Trump’s tariffs, talks between the South American bloc and partners such as United Arab Emirates, Canada and India are gaining renewed importance while a divided EU wavers after more than a quarter-century of talks. The prospect of rivals locking in preferential access to Mercosur’s markets — including critical minerals — is sharpening attention in capitals from London to Tokyo.