The European Union signed a comprehensive trade agreement with four South American countries on January 17. Three days later, President Trump announced that “American dominance in the Western Hemisphere will never be questioned again.”
The EU-Mercosur deal covers Argentina, Brazil, Paraguay, and Uruguay. It creates a free trade zone of 700 million people and eliminates tariffs on more than 90 percent of bilateral trade over 15 years through 2041.
Trump made the statement January 20 after U.S. forces captured Venezuelan President Nicolás Maduro on January 3. He told reporters: “The Monroe Doctrine is a big deal but we have superseded it by a lot. This isn’t a country on the other side of the world. This is Venezuela. It’s in our area.”
The European Commission said the Mercosur agreement responds to “business lost to US tariffs” and reduces European “reliance on China.” The EU Council approved the deal January 9.
Europe finalized a 25-year negotiation during Trump’s final month out of office. The 15-year implementation schedule locks South American countries into European trade relationships through 2041.
Argentine President Javier Milei reversed Argentina’s opposition to the deal. Argentina blocked the agreement in 2023. Milei signed January 17.
Trump has threatened military action against Colombia and economic pressure against other South American countries. The EU deal provides alternative markets for beef, poultry, and soybeans without U.S. tariffs. The agreement eliminates €4 billion in annual customs duties.
Trump claims Monroe Doctrine authority over the Western Hemisphere. Four South American countries signed 25-year European trade relationships while he announced hemispheric dominance.
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