Thirty years after its foundation, Mercosur’s member countries have little reason to celebrate. On the one hand, trade liberalization within Mercosur in the first years after its foundation have led to an intensification of intra-Mercosur trade and can be regarded as an early success. On the other hand, the transition from a trade agreement to a customs union has failed and deeper integration steps hardly seem feasible. In the past 10 years, China has overtaken the EU as Mercosur’s most important trading partner, resulting in trade flows shifting away from Europe to the Chinese market. What’s more, integration into global supply chains has been successful only in places. In light of this, the EU-Mercosur trade agreement could play an important role – argue Andreas Baur, Lisandra Flach and Feodora Teti.