12. Brazil and Argentina
Long-time competitors for South American influence, Brazil and Argentina have transformed rivalry into partnership, particularly through founding Mercosur, a regional trade bloc boosting cooperation. Established in 1991, Mercosur includes Argentina, Brazil, Paraguay, and Uruguay, aiming to promote free trade and fluid movement of goods, people, and currency. In December 2024, the European Union and Mercosur concluded negotiations on a Partnership Agreement, marking a significant milestone in their economic integration. (gov.br) This agreement is expected to enhance trade relations and attract investment, further solidifying the economic ties between Brazil and Argentina (gov.br).
