This study analyzes the Mercosur-European Union Agreement in thecontext of contemporary changes in international trade. It examines the economic,political, environmental, and geopolitical impacts of the treaty, assessing both itspotential and its limitations for Mercosur. Drawing on empirical data and a solidtheoretical framework, the research concludes that the agreement represents amilestone for South American regionalism. However, its success will depend onthe involved countries ability to implement commitments and respond to internaland external challenges.