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EU Accelerates Trade Push as Global Trading System Faces Upheaval

Brussels seeks new partnerships amid U.S. tariff uncertainty and shifting global alliances
The EU is rushing to ink trade deals at a time when the global trading system is being turned upside down. Photo: Luis Robayo/AFP/Getty Images

The European Union is stepping up efforts to conclude major trade agreements as growing uncertainty in the global trading system, driven in part by U.S. tariff threats, reshapes international economic relations.

Brussels is seeking to position itself as a stable and reliable trading partner amid concerns over Washington’s increasingly unpredictable trade policy under President Donald Trump. EU officials say the bloc aims to deepen ties with key partners as traditional trade alliances come under strain.

Last week, European Commission President Ursula von der Leyen signed the long-negotiated EU–Mercosur trade agreement in Paraguay, a deal covering a market of around 700 mln people. However, the agreement has since been delayed by the European Parliament, which voted to subject it to legal review, highlighting internal divisions within the bloc.

Attention is now turning to the EU–India summit in New Delhi on January 27, where leaders are expected to push for progress on a long-stalled free trade agreement. A deal with India would link two of the world’s largest markets and significantly expand the EU’s global trade footprint.

The EU already has trade agreements with more than 70 countries and is negotiating new deals across Asia and the Middle East. Analysts say the bloc’s challenge lies in balancing speed with its complex ratification process, as it seeks to uphold rules-based trade in an increasingly fragmented global economy.

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