On Saturday, January 17, 2025, the President of the European Commission, Ursula von der Leyen, signed the free trade agreement between the European Union and MERCOSUR in Asunción, Paraguay. This agreement is the result of more than 20 years of discussions between the two institutions and now must be ratified by the European Parliament to come into effect. 

According to the Preliminary Overview of the Economies of Latin America and the Caribbean, 2025 of ECLAC, Latin America's growth rate moderated to 2.4% in 2025, and experts forecast 2.3% of growth in 2026. ECLAC states that Latin America’s growth is insufficient to combat poverty and inequality in the region.

The creation of UNASUR represents one of the most important regional integration initiatives in Latin America, however, it has been inactive for years now, why is that?