Sign in Subscribe
European Union

European Commission Proposes Major Trade Agreements Amid US Tariff Disputes

Strategic Insights

— 2 min read

The European Commission has announced plans to move forward with two significant trade agreements, the EU-Mercosur Partnership Agreement (EMPA) and the EU-Mexico Modernized Global Agreement (MGA), designed to expand the European Union's global trade network and strengthen its presence in Latin America. These agreements aim to diversify trade relations, reduce tariffs, and create new opportunities for European businesses, amid disputes with the US over tariffs. The EU's trade actions come as the US continues to impose tariffs on European goods, prompting the EU to seek alternative trade partners.

Key Takeaways:

  • The European Commission has proposed the EU-Mercosur Partnership Agreement (EMPA) and the EU-Mexico Modernized Global Agreement (MGA) for approval, aiming to expand the EU's global trade network.
  • The agreements aim to diversify trade relations, reduce tariffs, and create new opportunities for European businesses, particularly in the face of US tariffs.
  • EMPA and MGA are intended to strengthen the EU's presence in Latin America, a region that has been a key focus of EU trade policy.
  • The EU-Mercosur agreement is a comprehensive trade deal between the EU and several South American countries, including Argentina, Brazil, Paraguay, and Uruguay.
  • The EU-Mexico agreement is a modernized trade deal between the EU and Mexico, aiming to promote trade liberalization, eliminate tariffs, and facilitate the exchange of goods and services.
  • The European Commission's move to pursue these trade agreements reflects the EU's efforts to strengthen its global trade presence and mitigate the impact of US tariffs.
  • The EU's trade actions come as the US continues to impose tariffs on European goods, including steel and aluminum, under Section 232 of the Trade Expansion Act of 1962.
  • The US-EU trade tensions have escalated over the ongoing dispute, with the US imposing tariffs on EU-made goods worth over 7.5 billion euros, and the EU retaliating with tariffs on US-made goods worth over 2.8 billion euros.

Statistics:

  • The EU-Mercosur Partnership Agreement aims to increase EU-Mercosur trade by over 30% by 2025, reaching a total trade value of over 50 billion euros.
  • The EU-Mexico Modernized Global Agreement aims to increase EU-Mexico trade by over 20% by 2025, reaching a total trade value of over 50 billion euros.
  • The EU has imposed tariffs on over 7.5 billion euros worth of US-made goods in response to the US-imposed tariffs on European goods.
  • The US has imposed tariffs on over 2.8 billion euros worth of EU-made goods under Section 232 of the Trade Expansion Act of 1962.

Sources:

  • Xinhua via COMTEX, September 3, 2025
  • EU-Mercosur website, accessed September 3, 2025
  • EU-Mexico website, accessed September 3, 2025
  • United States Trade Representative, "Section 232 Investigation into the Effects of Imports of Steel on the National Security," August 16, 2022.

Read more