BRASILIA/MONTEVIDEO – Brazil is closely examining a new US-Argentina trade agreement announced last week, fearing it breaches Mercosur restrictions on individual member pacts with third countries, three insiders told reporters.
Diplomats in Brasilia are dissecting the Washington-released document, which initial reviews suggest exceeds the bloc’s limits on bilateral deals designed to preserve collective bargaining strength. Last year, amid US President Donald Trump’s global trade frictions, Argentina secured 150 exceptions to Mercosur’s common external tariff—yet Brazilian officials estimate the pact covers nearly 200 items.
An Argentine spokesperson insisted the US product tariff cuts fit within those allowances, but sources highlighted additional snags like rules of origin, services, and technical barriers.
The 35-year-old bloc has endured strains as members pursue independent ties, though none had finalized a side deal until now, unlike Uruguay’s abandoned 2006 US FTA bid or its ongoing China push.
Argentina’s President Javier Milei, a Trump ally, claims Mercosur won’t block such moves; Foreign Minister Pablo Quirno said Milei could enact parts by decree, pending congressional nod for the full pact.
Brazilian officials warned of consequences: “There are rules that must be followed,” with any response likely at the late-June Asuncion summit, pending President Luiz Inacio Lula da Silva’s top-level decision. Uruguay and Paraguay offered no comment, as did the US State Department.