EU-Latin America: Mercosur Enters Force, Mexico Deal Imminent, Venezuela Sanctions Divide
EU-Mercosur Trade Agreement: Provisional Application Begins
The EU-Mercosur Interim Trade Agreement (iTA) entered provisional application on 1 May 2026, marking the operational start of one of the world's largest trade blocs by population. The Council authorized signature by qualified majority vote on 9 January 2026, overriding French-led opposition. Argentina ratified on 26 February, Uruguay on 27 February, and Paraguay on 17 March. Brazil's ratification is pending but expected.
The European Parliament voted 334-324 on 21 January to refer the deal to the CJEU for an opinion on whether provisional application is legally valid. France remains the primary opponent, with agricultural lobbies citing cheap beef imports and Amazon deforestation. Full enforcement of the EU Deforestation Regulation (EUDR) on all imports is expected from December 2026.
EU-Mexico Modernized Global Agreement
All 27 EU member states approved the Modernized Global Agreement (MGA) on 11 May 2026. Formal signing is scheduled for 22 May 2026 at the EU-Mexico summit in Mexico City, with President Claudia Sheinbaum and Commission President Ursula von der Leyen. The deal is projected to increase bilateral commerce by 35% over five years, covering political dialogue, sustainable trade, investment, and enhanced cooperation.
EU-Chile Advanced Framework Agreement
The Interim Trade Agreement with Chile entered into force on 1 February 2025. The full Advanced Framework Agreement — signed 13 December 2023 — awaits ratification by all 27 member states. Once in force, 99.9% of EU exports to Chile will be tariff-free, with projected trade increases of EUR 4.5 billion.
EU-Venezuela: Sanctions Renewed Amid Internal Division
The EU Council renewed Venezuela restrictive measures in December 2025 until 10 January 2027, maintaining asset freezes and travel bans on 69 listed individuals plus an arms embargo. Internal EU division is notable: Spanish FM Jose Manuel Albares proposed lifting sanctions on VP Delcy Rodriguez as a diplomatic engagement gesture, while the European Parliament voted decisively to preserve restrictions. Conditions for relief remain: tangible progress on human rights and genuine democratic transition.
EU-Colombia/Ecuador Dynamics
Ecuador imposed a 30% "security tariff" on Colombian goods in January 2026, citing Bogota's failure to contain cross-border drug trafficking. This bilateral friction complicates EU regional engagement. Ecuador's pivot toward deeper US security cooperation — surveillance drones, military advisors, port monitoring — represents a competitive dynamic for EU influence in the Andean corridor.
Global Gateway Investment Agenda
The EUR 45 billion EU-LAC Global Gateway Investment Agenda is in implementation. Key initiatives include: the BELLA submarine fibre-optic cable expansion connecting Central America, Peru, and the Caribbean; a EUR 6.86 billion regional electricity integration initiative funding 24 clean energy projects; and the newly launched EU-LAC Supercomputing Network for AI backed by EUR 15 million.
EU-CELAC Summit: Santa Marta Outcomes
The 4th CELAC-EU Summit in Santa Marta, Colombia (9 November 2025) produced commitments to tripling renewable energy generation and doubling energy efficiency across LAC by 2030. The EU-CELAC Roadmap 2025-27 was advanced with focus on climate action, biodiversity financing, and digital connectivity.
EU Sanctions: Nicaragua and Cuba Pressure
The EU renewed Nicaragua sanctions until October 2026. On Cuba, the European Parliament approved an amendment in January 2026 expressing deep concern over Cuba's authoritarian trajectory and cyber operations cooperation with Russia, urging suspension of the EU-Cuba Political Dialogue and Cooperation Agreement.