Damián Rodríguez and Bruno Theodoro Luciano The Association Agreement between Mercosur and the European Union: Dilemmas and prospects at the global crossroads Abstract This paper analyses the conclusion of the Association Agreement between Mercosur and the European Union and examines its geoeconomic and geopolitical implications for both regions within a context of increasing uncertainty in the international system. To this end, it addresses the main challenges and opportunities both blocs face in terms of strategic autonomy from a critical perspective which focu­ses on the structural determining factors of development, particularly in Mercosur countries. Introduction On 6 December 2024, during the 65th Summit of Presidents of the South American bloc, the European Union(EU) and Mercosur concluded an Association Agreement(AA) after more than twenty years of negotiations. Since an Agreement in Principle on trade had been reached in 2019, followed by the conclusion of the political and cooperation pillar a year later, a series of tensions arose that cast doubt on the agree­ment´s viability which even led to consider its abandonment on several occasions. At the same time, global events such as the outbreak of the COVID-19 pandemic in 2020 and Russia’s invasion of Ukraine in 2022 accelerated the transformations that had started to emerge in the international system since the 2008 financial crisis. In particular, the challenge to the liberal international order and the multilateral sys­tem by far-right parties and movements, with a strong anti-globalisation narrative, which have gained ground in the political arena in recent years, has intensified. Li­kewise, globalisation has been reshaped: supply chains have become increasingly dependent on security consi­derations, protectionist practices by states have increa­sed along with the resurgence of industrial policy, and tariffs are being used as a pressure mechanism in global economic relations(Sanahuja and Rodríguez, 2024). The Association Agreement between Mercosur and the European Union: Dilemmas and prospects at the global crossroads 1