A year of US tariffs and trade threats has rattled markets worldwide, accelerating a shift in global commerce as businesses and governments seek more predictable partners. While China has drawn much of the attention, neighbors and major trading partners such as Mexico and Canada have also felt the effects. European capitals, alarmed by volatile US policy and dismissive remarks at Davos, are rethinking long-standing arrangements.
To offer an alternative to Washington, the European Union has stepped up negotiations and signings to show it remains a reliable trade partner. But trade deals are intricate and slow to finish, and domestic politics often complicate ratification.
On January 17 in Asuncion, Paraguay, European Commission President Ursula von der Leyen signed the long-awaited EU-Mercosur agreement with Argentina, Brazil, Paraguay and Uruguay. Together with the EU’s 27 members, the pact covers roughly 700 million people and ranks among the globe’s largest free-trade zones. EU officials presented the deal as a commitment to lower tariffs, smoother trade and better prices for consumers.
Only days later the European Parliament voted to delay the accord, requesting an extended review by the European Court of Justice. That pause — and deep opposition from European farmers worried about competition — undermines the EU’s message of certainty and may prompt South American partners to hesitate. The episode illustrates how a relatively small but vocal minority can slow or block international agreements.
Von der Leyen is banking on better results at the EU-India summit in New Delhi, hosted by Prime Minister Narendra Modi. The bloc is eager to conclude a free trade agreement with India, the world’s largest democracy and the fifth-largest economy. Talks first began in 2007, paused in 2013 and resumed in 2022. If finalized, an EU-India deal could cover a market approaching two billion people and account for a significant share of global GDP.
Many countries now view the EU as a steadier and more rule-driven trading partner than the United States. Observers say Brussels is serious about honoring commitments and building new commercial ties. Still, lengthy negotiation timetables, complex ratification procedures and competing domestic interests remain constant obstacles.
The EU already maintains preferential trade accords with 76 countries and has renewed interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the 12-nation Asia-Pacific bloc that so far includes only the UK from Europe. In 2025 the EU updated its trade deal with Mexico and concluded a trade and investment agreement with Indonesia. Ongoing talks continue with Malaysia, the Philippines and the United Arab Emirates.
The EU-UK Trade and Cooperation Agreement will undergo its first full review since entering into force in 2021. While the audit is meant to check implementation, some officials hope it can also ease tensions and restore a more cooperative tone.
Beyond bilateral agreements, experts warn that restoring the global rules-based trading system is urgent. The World Trade Organization needs reinforcement, they say, and the EU could be central to building a coalition to defend multilateral rules against both unilateral US measures and long-standing Chinese shortcomings in meeting commitments.
In short, Brussels is pursuing multiple paths to shore up trade ties and demonstrate reliability, but domestic politics and complex legal procedures mean that turning signed papers into lasting partnerships remains a slow, uncertain process.