Bangladesh, Dec. 3 -- Brazilian President Lula da Silvas recent announcement that the Mercosur–European Union (EU) trade agreement will be signed on December 20 is a diplomatic milestone. What is pitched as the largest trade deal in history (in South America, largely pushed by Brazil) would bind two economic blocs representing nearly 718 million people and a combined GDP close to US$ 22 trillion. Brussels leadership under Ursula von der Leyen is calling the pact the biggest ever negotiated by the EU.

In a world of shifting alliances, economic pressure and supply-chain uncertainty (in the age of Trump), Brasília sends a blunt message: South America is seeking a diversified platform of partners.

The numbers behind this ambition...