Trade between European nations and partners in Africa and South America is showing significant momentum, highlighted by record-breaking bilateral trade between the United Kingdom and Kenya and the finalization of a landmark free trade agreement between the Mercosur and EFTA blocs.

 

Bilateral trade between the UK and Kenya reached a record £2.1 billion (KES 360 billion) for the four quarters ending in the third quarter of 2025, Citizen Digital reported on February 5, 2026. This sustained high level of trade is attributed to strong Kenyan exports, including tea, coffee, and horticultural products, alongside increased UK exports of petroleum, vehicles, and machinery. The announcement followed the first UK–Kenya Business Forum in Nairobi, where discussions to deepen economic collaboration were held. ‘Sustaining over £2.1 billion in trade for a second consecutive quarter underscores the growing confidence of UK businesses in Kenya as a trade and investment partner,’ commented Trade Cabinet Secretary Lee Kinyanjui. The two nations are also advancing talks on a potential Digital Trade Agreement, signaling a move towards modernizing their economic partnership.

 

In a separate but related development demonstrating growing North-South trade, the South American bloc Mercosur signed a free-trade deal with the European Free Trade Association (EFTA) in September 2025, according to the Buenos Aires Times. The agreement brings together Mercosur nations—Brazil, Argentina, Uruguay, Paraguay, and Bolivia—with the EFTA states of Switzerland, Norway, Iceland, and Liechtenstein. The comprehensive deal is expected to provide improved market access for over 97% of exports from both sides, covering trade in goods and services, investment, intellectual property rights, and public procurement. The agreement, which concluded after negotiations began in 2017, now awaits ratification by the parliaments of each member state.

 

These agreements underscore a strategic push to diversify and strengthen trade relationships. The UK-Kenya performance highlights the potential for post-Brexit Britain to expand ties with key Commonwealth partners, while the Mercosur-EFTA pact opens up significant new commercial opportunities, linking two powerful economic regions and diversifying their global trade footprints.

 

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