German Chancellor Friedrich Merz hailed the European Union’s looming trade deal with South America’s Mercosur bloc on Sunday, April 19th.
Opening the Hannover Messe trade fair, Merz welcomed Brazilian president Luiz Inácio Lula da Silva as a guest of honor. Lula joined Merz in casting the deal as a strategic response to tariffs and trade protectionism—an indirect critique of U.S. president Donald Trump’s trade policies.
Faced with unilateralism, Mercosur and the European Union have chosen cooperation.
Lula also noted the deal would create “a market of almost 720 million people and a combined GDP of $23 trillion” (€19.5 trillion).
The EU–Mercosur trade deal is set to take provisional effect on May 1, 2026, although the agreement still faces legal challenges.
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