Brazil is currently examining the trade agreement announced last week between the United States and Argentina to determine if it violates the Mercosur trade bloc's regulations. According to multiple sources familiar with the situation, Brazilian diplomats are carefully scrutinizing the details of the agreement released by Washington. Initial assessments suggest that the agreement may exceed the limits set for bilateral deals by Mercosur member states, raising concerns about its implications for the integrity of the regional trade bloc.

The Mercosur agreement aims to enhance the negotiating power of member countries by imposing restrictions on how far members can engage in trade deals with non-member nations. This is particularly significant in light of the recent geopolitical trends and trade tensions, particularly those instigated by the previous administration of former US President Donald Trump. The situation indicates that Argentina sought to temporarily expand exemptions to the common external tariff of the block, receiving specific allowances that may now come into conflict with Mercosur's overarching principles and regulations.

The current analysis by Brazil's government will have far-reaching implications not only for Brazil-Argentina relations but also for the stability and cohesiveness of Mercosur as a whole. Should it be concluded that the agreement violates Mercosur rules, Brazil may take steps to address or challenge the terms of the agreement, potentially leading to significant shifts in trade diplomacy within the region, as member countries evaluate their own positions regarding international agreements with external powers.