Uruguay Urges EU to Ratify Mercosur Deal to Counterbalance China’s Growing Influence

Uruguay’s Foreign Minister Mario Lubetkin urged the EU to finalize ratification of the EU‑Mercosur trade pact, warning that failure would allow China and other powers to diminish Europe’s influence in Latin America.

During a Brussels visit, Lubetkin said the accord marks a qualitative shift in Europe‑South America relations and emphasized that Mercosur has already met its obligations.

“The four Mercosur members ratified the agreement within two months,” Lubetkin noted. “This has never occurred previously. Governments across the political spectrum concurred, recognizing the strategic importance for both regions.”

After more than twenty years of negotiations, the pact was politically concluded and entered its implementation phase on May 1 for Mercosur.

In Europe, ratification remains politically contentious, with the European Parliament serving as the primary procedural hurdle.

Waiting for the European Parliament

In January 2026, Parliament voted to request a CJEU opinion on whether the agreement’s legal structure and its provisional application comply with EU Treaties.

Consequently, Parliament has not yet granted consent, and the procedure is effectively stalled pending the Court’s opinion, which may exceed one year.

Meanwhile, the full Association/Partnership Agreement has not yet entered into force, although its trade component is operating provisionally.

Lubetkin expressed confidence that Parliament will eventually approve the deal, though he noted that the timing remains uncertain.

“I cannot say whether it will be in 2027 or 2028,” he said. “That is Europe’s decision; on our side, the process is complete.”

Rather than waiting for Brussels, Uruguay intends to move forward.

As Mercosur president, Montevideo plans to host the inaugural EU‑Mercosur trade forum in December and is coordinating with European Trade Commissioner officials to deepen cooperation before ratification is completed.

“Our citizens cannot wait,” Lubetkin said. “They need concrete answers now.”

A changing geopolitical landscape

Lubetkin argued that the agreement has become more strategically significant than five years ago, as global trade is increasingly shaped by geopolitical competition.

“Europe should consider regions with complementary strengths,” he said. “This is a win‑win agreement.”

The minister said Europeans should anticipate higher investment flows, stronger economic growth, and new jobs as businesses on both sides of the Atlantic expand.

He added that the agreement is not only about South American exports entering European markets. “There is ample investment capacity in our region as well,” Lubetkin said. “The benefits flow in both directions.”

A warning for Europe

Lubetkin warned European policymakers that Mercosur will not wait indefinitely, adding, “If Europe rejects this agreement, the consequences will be far greater for Europe than for us.”

When asked whether China would be the obvious alternative partner, Lubetkin replied without hesitation, “Obviously.”

China has become Uruguay’s largest trading partner over the past 14 years, while Europe remains its biggest source of investment and the United States dominates in services.

Rather than choosing sides, Lubetkin insisted Uruguay intends to deepen relations with all major powers simultaneously.

“We are not working with China against the United States,” he said. “We work with China, the United States, and the European Union.”

During Uruguay’s six‑month Mercosur presidency, the bloc also aims to conclude trade negotiations with Canada, the United Arab Emirates, and India, while expanding ties with ASEAN countries and Africa.

“No one will wait,” Lubetkin warned.

Rejecting great-power rivalry

Lubetkin dismissed suggestions that Uruguay risks being caught between Washington and Beijing, despite growing pressure from the Trump administration to curb Chinese influence in Latin America.

“Our policy is positive, not against anyone,” he said. “We aim to deepen business relations with all our partners.”

This balancing act reflects Uruguay’s broader foreign policy under its centre‑left government, which took office in March 2025.

Despite an increasingly conservative political landscape across Latin America, Lubetkin rejected the notion that Uruguay is becoming isolated.

He pointed to the recent visit of Chilean President Gabriel Boric as evidence that ideological differences are giving way to practical cooperation.

“Whether governments are on the right or the left, countries need each other,” Lubetkin said. “The world is changing, and cooperation is more important than political labels.”

For Uruguay, Europe remains the preferred strategic partner, but Lubetkin’s message in Brussels made clear that the window of opportunity will not stay open forever.

“If Europe moves forward, both sides will benefit,” he said. “If not, Mercosur will continue opening new doors elsewhere.”

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