Now I'm confused. Are you talking about the modernization of the EU-Mexico agreement (literally the subject of the cited article), the modernization of the EU-Chile agreement, and/or the new EU-Mercosur agreement?
I ask because you talk of the EU doing business in LAC - Latin America plus the Carribean. The only agreement with CARIFORUM mentioned in the article was penned back in 2008. It's not one of the broader "next-generation" agreements that the article discusses.
Here's one example of how these new agreements "reflect a shared vision of ... the rule of law". The EU-Mercosur agreement prohibits either side from "not enforcing environmental and labour laws".
Perhaps if you could likewise quote a sentence or two it would help clarify what it is you are reading into the rule of law as reflected in which agreement(s).
The verbatim agreement text supporting the above quote:

In addition, the Parties agree in Article XX [TSD].2(3) of this Agreement that they should not weaken the levels of protection afforded in domestic environmental or labour law with the intention of encouraging trade or investment. The Parties recall that, under Article XX [TSD].2(5) of this Agreement, they agree that they shall not fail, through a sustained or recurring course of action or inaction, to effectively enforce their environmental or labour laws, in order to encourage trade or investment. In this regard, the parties acknowledge the importance of the provision of appropriate available means to perform such enforcement. Moreover, pursuant to Article XX [TSD].2(6) of this Agreement the Parties shall not apply environmental and labour laws in a manner that would constitute a disguised restriction on trade or an unjustifiable or arbitrary discrimination.

https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-fe32e36cbd0e/library/19d538eb-d33c-4039-8afa-42dfe7cc66b6/details?download=true

Some genies won't be going quietly back into their bottles:
https://www.thecanadianpressnews.ca/national/b-c-critical-minerals-being-diverted-away-from-united-states-david-eby/article_ff720605-b2b9-516c-8ef1-ccb547035ea5.html

British Columbia's premier says major companies in the province are in the process of redirecting critical minerals and energy products to markets outside the United States as the reality of U.S. President Donald Trump's tariffs sets in.
David Eby says he has spoken with leaders of major mining and refining companies in B.C., and they indicated they are pivoting operations to redirect products such as aluminum and copper to alternative markets.
Eby told a news conference in North Vancouver that a "historic reordering" of global trading patterns is underway, and B.C. will not be left out.

And I doubt Ford changes his mind about tearing up that contract with Starlink.

Doesn't look like much more than Canada had already announced:
https://ca.finance.yahoo.com/news/trump-trudeau-talk-canada-braces-090038783.html
Just a joint task force on organized crime. Didn't even have to mobilize their army on our border. LOL.
Added at 1505 MST:
10000 is the magic number :) https://www.cbc.ca/news/politics/trudeau-trump-speak-trade-war-1.7448805

Trudeau said, all told, there will be 10,000 front-line personnel working along the border to address Trump's stated priority: a major crackdown on drugs and migrants.
The prime minister also made a series of new commitments to Trump, including a promise to appoint a new fentanyl "czar" who will lead Canada's efforts to crack down on the deadly drug. And he promised to list Mexican cartels, one of the top purveyors of fentanyl and other drugs in Canada and the U.S., as terrorists under Canadian law.
Trudeau said Canada is launching a "Canada-U.S. Joint Strike Force," that will be tasked with combating organized crime and money laundering.

Tom Bowley (mentioned and quoted extensively by one of the posters) was uber bearish and sold portfolio to 100% cash on Friday (https://youtube.com/watch?v=t2QIKw-O2wg). Today, he is live streaming his webinar titled "Bearish Signals Abound: Navigate the Uncertainty" on Youtube in 50 minutes -
https://www.youtube.com/live/axOGOHPHADE
Not a recommendation, just an FYI.

I sold 20% 35% of my Bitcoin ETF and was surprised to see it is slightly up today but off 8+% from today's low. GLD is up too. If anyone is tracking meme coins, please post how they (as a group) have done today. I suspect not too well, given Ethereum (not considered a meme coin) is tanking at 17.5% on the day. So, risk off is still on.
I sold out and took profits on a few trump trades that did not recover well during the day today. So, out of FNMA.
I figured anything that did not recover well during the day today is ultra speculative even for the gamblers in this market.

I sold out of about half of my current MM positions. In taxable I added to NUV which sports a 4.43% tax-free income. In the IRA, I added to JPIE, and initiated new positions in JPST and PFFA. These changes lift the current portfolio distribution percentage to 4.05%.
If interested, here is a nice write up of JPIE by Charles Lynn Bolin:
https://seekingalpha.com/article/4747546?gt=3cab215a7d0a87a5

Huh. I did not expect the US markets to react this way. We remain in bizarroworld.

Haven’t you guys heard? Mexico’s been cancelled.

Story
”Who’s on first. I Dunno’s on second.”

Pretty sure we guys are all aware of what all happened today.
And um, no, not cancelled.
Paused (per your linked article) and delayed (until March 1) are the two most commonly used words to describe (the insanity).

I haven't heard that Trump wants Mexico to be the 52nd state in the union.
And no way he wants people thinking about the price of avocados and beer during the Stupor Bowl.

Huh. I did not expect the US markets to react this way. We remain in bizarroworld.

Haven’t you guys heard? Mexico’s been cancelled.
Story
”Who’s on first. I Dunno’s on second.”

Mexico and US mutually pause.
https://www.cnbc.com/2025/02/03/trump-tariffs-mexico-canada-china-sheinbaum-responds.html

What might your one fund be?

https://corporate.vanguard.com/content/corporatesite/us/en/corp/who-we-are/pressroom/press-release-vanguard-announces-largest-ever-expense-ratio-reduction-020325.html
Details:
https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/announcing-largest-fee-cut-vanguard-history.html

Sold most of my VOO holding, took equities from 48% to 15% -- I'll sit on sidelines and watch the craziness for a while.

No So Fun Fentanyl Facts:
https://www.forbes.com/sites/andyjsemotiuk/2025/01/31/tariff-on-canada-not-justified-by-us-immigration-and-drug-claims/
Excerpt: (BOLD added):
In Fiscal Year 2024, USCBP seized 21,148 pounds of fentanyl at the southwest border, mostly smuggled from Mexico. In contrast, only 43 pounds were intercepted at the northern border. This means that less than 1% of all fentanyl seizures occurred at the U.S.-Canada border.
So citing the stop of it flowing (sic) in from Canada as a reason to impose a 25% tariffs seems, well, insane.

Yeah.
Frankly I'm wonder how many of these antics (Canada, Panama, Greenland) the Naranja Suprema de Mar-a-Lago is attempting to create his own version of the Gleiwitz Incident.....

No So Fun Fentanyl Facts:
https://www.forbes.com/sites/andyjsemotiuk/2025/01/31/tariff-on-canada-not-justified-by-us-immigration-and-drug-claims/
Excerpt: (BOLD added):
In Fiscal Year 2024, USCBP seized 21,148 pounds of fentanyl at the southwest border, mostly smuggled from Mexico. In contrast, only 43 pounds were intercepted at the northern border. This means that less than 1% of all fentanyl seizures occurred at the U.S.-Canada border.
So citing the stop of it flowing (sic) in from Canada as a reason to impose a 25% tariffs seems, well, insane.

Buy the Dip and Sell the Rip?
Trust the Buffoon Put?
Here's one take on all that.
https://www.marketwatch.com/story/buy-the-dip-and-sell-the-rips-stock-traders-are-counting-on-the-trump-put-e7017958?mod=watchlist_latest_news
(Subscription)
Excerpt:
Expect the stock market “vigilantes” to force the Trump administration to do a face-saving backtrack in the near future.
The current market environment suggests that traders should adopt a strategy of “buy the dip and sell the rips.” The combination of negative surprises during earnings season and potential bearish policy announcements when the market is overbought will put downward pressure on stock prices. On the other hand, investors should trust the stock market vigilantes to activate the “Trump Put” in the event of a market downdraft, as the U.S. president is said to judge his own performance by the U.S. stock market. In the absence of a severe bearish catalyst, expect stock prices to bounce when the market becomes oversold.

See also
https://trkmw.dowjones.com/view/66e9c5e92241b007af32ae7cmvzxu.28i6/20a0998b
(Subscription)
Excerpt:

Traders are shocked that a president who said he would place tariffs on countries with whom the U.S. has notable trade deficits has put tariffs on some of those countries. After Canada, Mexico and China, the European Union may be next.
The chart below from Goldman Sachs, shows how prediction markets late last week were not taking the tariff threat very seriously — setting up today’s reaction.
The chart (that won't copy) shows only a 30% probability as late as January 30 of "Effective Tariff Rate Reaching 5% in 1H 2025."

And here's more on what was thought to be priced in from The Barron's Daily (BOLD added)
Trump Tariffs Cause Stock Market Chaos. Why Wall Street Didn’t Act on Warnings and 5 Other Things to Know Today.

President Donald Trump looks set to deliver on his promise and impose hefty tariffs on Canada, Mexico, and China, with Europe next in his sights. Amid all the turbulence that’s causing in financial markets, one question is obvious—why is this such a surprise?
After all, this is what Trump promised to do since he started his campaign to retake the White House. He reiterated it after he was elected in November. He even gave specific numbers and dates for a start last week.
But traders were still skeptical that anything material would come of it. Stocks rose markedly in January, extending impressive gains since Trump’s victory in November on optimism that deregulation and tax cuts would bolster corporate earnings.
The reason investors dismissed the rather obvious signs was because the tariffs don’t seem to make sense. Maybe they would work as a negotiating technique to extract concessions on other things, but from an economic perspective it’s hard to see what tariffs accomplish—other than rapidly increasing prices for fuel and other goods that will hamper economic growth.
Furthermore, the actual announcement was on the extreme end of the spectrum of what was possible. George Saravelos, a strategist at Deutsche Bank, noted that the tariffs are three times larger than had been priced into the market—and five times as big as the cumulative action Trump took in his first term.
To be sure, Trump may yet de-escalate and walk back the levies—or be forced to do so by the courts or Congress. Given the market’s early losses Monday, it would still be a huge surprise if the tariffs lasted a long time—it certainly seems unlikely they will be in place for four years.
One thing is clear. Chaos and confusion will remain a feature of Trump’s policies.

On February 2, 2025, Panama offered several concessions to the United States following a meeting between Secretary of State Marco Rubio and President Jose Raul Mulino. The concessions include:
Free passage for US warships through the Panama Canal.
Withdrawal from China’s Belt and Road Initiative.
Optimizing transit priority for US Navy ships through the waterway.
These concessions were made in response to concerns raised by the US regarding Chinese influence over the Panama Canal and the high fees charged to US ships. Additionally, the Panamanian government discussed migration issues, offering an airstrip near the Darien Gap for repatriation proceedings.
Maybe I can breathe again re: BLX? But I am pissed. The Orange bully got his way. Granted, the Chinese installations---non-military--- did make me itch.