BRAZIL - World’s Largest Trade Zone Activated

Brazilian President Luiz Inácio Lula da Silva signed the promulgation decree formalizing the entry into force of the Mercosur-EU trade deal—ending 26 years of negotiations between the two blocs and creating the largest South-South-North free-trade zone in modern history. Coverage: 31 countries (27 EU + 4 Mercosur), 720 million inhabitants, US$22 trillion combined GDP. Brazilian Senate ratification completed in March 2026. EU Commission applies the deal provisionally despite a pending Court of Justice review requested by the European Parliament.

“The response that the European Union and Brazil are giving the world is that there is nothing better than to believe in the practice of democracy, in multilateralism, and in cordial relations between nations,” Lula said at the Palácio do Planalto signing ceremony. “This is the example we set with this agreement.” The framing is deliberate—Lula is positioning the agreement as a structural counterweight to Trump-era unilateral tariff escalation.

The asymmetric tariff schedule reflects Mercosur’s structurally higher tariff baseline. Mercosur eliminates tariffs on 91 percent of European goods over 15 years; the EU eliminates tariffs on 95 percent of Mercosur exports over 12 years.

For Mercosur, the cumulative effect is roughly 1 billion-consumer market access through 2027—Europe + Asian Tigers + Northern Europe alpine markets. The diversification reduces Mercosur dependence on US-China bilateral demand and creates structural negotiating leverage that did not exist in the unilateral-tariff Trump era.

For European industrial manufacturers (Volkswagen, Siemens, Sanofi, BASF), Mercosur access compounds the recent Brazilian and Argentine RIGI investment frameworks. Volkswagen’s Argentine operations, Siemens’s Brazilian energy contracts, and Sanofi’s expanded Latin pharmaceutical operations all benefit from accelerated tariff elimination and harmonized regulatory frameworks.

-www.riotimesonline.com, 29 April 2026

Commentary: Globalism at work! Doubtless, this is the future—and, we may add, the winning ticket.

Mercosur consists of members Brazil, Argentina, Uruguay, and Paraguay. A total of 720 million people and $22 trillion combined GDP.

During the last few decades, we have seen ever-growing power blocs, which will and must include virtually every country in the world.

Prophetically, it is significant, because what was virtually impossible 100 years ago is now becoming reality. The volume of merchandise produced or material dealt with is virtually mind-boggling. Based on various estimates, there are up to 100,000 merchant vessels globally. It should be noted that China, South Korea, and Japan are responsible for building some 93% of the world's cargo ships—China again leading with 50% of the market. Information from various sources indicates that global cargo shipbuilding has a backlog of almost 12 years. We all know the purpose of these cargo ships: shipping and receiving merchandise globally. The pace is increasing; so is the volume. In summary, we can say: prosperity galore the world over.

Yet again, we must see the end, and here the prophetic Word gives us the details: “Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come. And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more” (Revelation 18:10-11).

(See New Babylon Rising, Item #2359, $16.99.)