Economist Podcasts — “Lowering the Steaks: A Mercosur Deal at Last”

Date: January 13, 2026
Host: Jason Palmer
Guests: Christian Odendall (Economics Editor, Europe), Moeka Iida (Writer, Japan), Hamish Clayton (Britain Desk), Paul Sinton Hewitt (Parkrun founder)

Episode Overview

This episode of The Intelligence explores three core stories:

1. The Long-Awaited Mercosur-EU Trade Deal: What it means, why it took decades, and what its passage signals in the age of global economic protectionism.
2. Japan’s Rising Anti-Foreigner Sentiment: How changing demographics, tourism, and politics have brought the “gaikokujin mondai” (foreigner problem) to the country’s political center.
3. Parkrun: A British Health Phenomenon: The unlikely story of how a community running event became a model for public health success.

Segment 1: The Mercosur-EU Trade Deal — Breaking Down a Historic Agreement

Starts 04:10

Key Points & Discussion

• Deal Overview

  • The pact creates a near-free trade bloc of 700+ million people: the EU and Mercosur (Brazil, Argentina, Paraguay, Uruguay; with Bolivia poised to join)
  • “This is the biggest ever deal for both blocs, and more than that, it's a sign of how the fantastically complicated business of world trade is being reconfigured.” — Jason Palmer [03:51]

• Tariffs and Goods Impact

  • The deal will eliminate tariffs on roughly 90% of goods over the next decade.
  • Current tariffs can be very high: e.g., up to 35% on cars, 18% on chemicals.
  • Trade in services and lowering non-tariff barriers are also included, though “tedious” and slow to implement.

• Estimated Economic Impact

  • Forecasts: +€49bn EU exports, +€10bn Mercosur exports.
  • Major existing trade: EU exports machinery, chemicals, cars; Mercosur exports agricultural goods, minerals.

“Europe needs access to more raw materials from diversified sources — and the deal could help develop those Latin American industries, which is important for both Mercosur countries and Europe.” — Christian Odendall [05:47]

• Why Did It Take So Long?

  • “Down in one word, farmers. The exports from Mercosur to the EU is almost half agricultural goods at the moment. And Europeans also want to eat Argentinian steaks too, if given the chance. But the farmers selling them European steaks are a lot less keen on this, to put it mildly.” — Jason Palmer [06:01]
  • Agricultural protectionism, especially in France and Poland, led to decades of delay.
  • EU insisted on protections for “geographical indicators” (e.g., Champagne, Feta).

• The Political Drama of Passage

  • France and Poland opposed until the end.
  • Passed by “qualified majority” after political bargaining and promises of subsidies to farmers.
  • “The farming lobby and its political representatives at the end had to be bought off at some point. But it worked out in the end, and that is what counts.” — Christian Odendall [08:21]

• Will Much Really Change?

  • Economic growth effects are minor because current trade volumes are small (~€57bn in EU exports to Mercosur vs. €400bn to Indo-Pacific).
  • “The significance stretches beyond monetary value ... It's about geopolitics, supply chain diversification, and strengthening ties as a response to American protectionism and Chinese competition.” — Jason Palmer [09:01]
  • The deal’s symbolism amidst a shifting global trade landscape is crucial.

• Geopolitical Subtext

  • Comes as the US tightens trade controls and China “weaponizes” trade.
  • Seen partly as “writing America out of the equation” and aligning Europe/Latin America against shifting global power balances.

“This deal started in 1999 when globalization was in its prime, and is now concluded at a time when globalization is in retreat. These kinds of deals are an answer to America and China trying to change the rules of the game.” — Jason Palmer [10:16]

Memorable Moment

“Europeans, even with this deal, will continue to pay higher prices for Argentinian steaks. The tariff cut... will only apply to the first 100,000 tons of beef—and that is just one and a half percent of total beef production in the EU.” — Jason Palmer [06:41]

Segment 2: Japan’s “Foreigner Problem” — Demographics, Populism & Politics

Starts 12:36

Key Points & Discussion

• Rising Anti-Foreigner Politics
  • Takaichi Sanae (Japan’s PM) cited “foreigners attacking deer” — a baseless online rumor — in her campaign.
  • Far-right party Sanseto surges on Japanese-first, anti-foreigner rhetoric, expanding from 1 to 15 Upper House seats in July past year.

“This foreigner problem is now at the center of Japanese politics.” — Moeka Iida [13:20]

• Demographics Behind the Debate
  • Only 3% of Japan’s population is foreign, much lower than the OECD average.
  • Still, the number of foreign residents has doubled since 2010 to nearly 4 million due to labor needs.

“Foreign workers are desperately needed for labor shortages... [But] the government insists it has no immigration policy.” — Moeka Iida [15:04]

• Paradoxes and Populism

  • Many foreign workers are officially “students” or “technical trainees” but fill essential service jobs.
  • Sanseto brands this as a “silent invasion,” fueling rumors of crime and unfair advantage.

• Tourism and Investment

  • Tourism has boomed post-Covid: “It’s likely to have surpassed 40 million last year. Tourism is now Japan’s second biggest export after cars.” — Moeka Iida [16:38]
  • Concerns over “overtourism,” a weak yen making Japan cheap for visitors, and foreign investment in property stoking anxieties.

• Government Response

  • LDP-led administration cracking down on “illegal stayers,” talking up stricter rules for foreign workers, tourist tax proposals, and property restrictions.
  • These policies seem to have stemmed Sanseto’s rise, at least for now.

• Economic Reality vs. Political Rhetoric

  • Underlying frustrations are more about stagnation (“after decades of deflation, now inflation but real wages are falling”).
  • “Japan needs more foreigners, not fewer, to keep its economy going...talking tough on foreigners might be good for politicians in the short run, but in the long run, it’s only going to hurt Japanese people.” — Moeka Iida [19:15]

Segment 3: Parkrun — A Quiet Revolution in Public Health

Starts 20:17

Key Points & Discussion

• What is Parkrun?

  • Began as a small group run in 2004; now a Saturday morning fixture at 880 UK locations and in 23 countries.
  • “Attendance has grown from just 13 runners in the opening run in 2004 to 200,000 across the country on a typical Saturday. 3.9 million people in Britain have now completed at least one Parkrun.” — Paul Sinton Hewitt [20:45]

• Health & Economic Benefits

  • Academic study credits Parkrun with £668 million per year in benefits, including cost-savings for the NHS.
  • “Parkrun is at least three-times as cost-effective as other comparable public health schemes.” — Paul Sinton Hewitt [21:43]
  • Relies on volunteers, uses community park spaces.

• Inclusive & Social Model

  • Brands itself as “a run, not a race.”
  • “The secret to Parkrun’s success is its inclusivity. Whether you walk or run, it’s open to all.” — Paul Sinton Hewitt [22:30]
  • Removed official course records to discourage excessive competition, which annoyed some serious runners.

• Gamification & Community

  • Milestone incentives (special shirts after 50, 100, 250 runs).
  • Gamification—“I want to do the whole Alphabet now!” — Paul Sinton Hewitt [23:34]

• Addressing Social Isolation

  • 70% of participants report reductions in loneliness and mental health improvements.
  • Over 2,000 GP practices now “prescribe” Parkrun as part of social prescribing partnerships.

“It’s never felt as a chore for people. For many, it’s a reason to push that extra mile and to ensure running isn’t seen as a solo sport but part of a community.” — Paul Sinton Hewitt [25:20]

• Challenges of Inclusivity
  • Lower participation in deprived communities, despite data showing those areas see the largest health/happiness gains.
  • Sport England now funds Parkrun to establish events in these areas; new Parkruns also running in 20 UK prisons.

Notable Quotes & Timestamps

• On Trade Geopolitics:
  • “This deal started in 1999 when globalization was in its prime, and is now concluded at a time when globalization is in retreat.” — Jason Palmer [10:16]
• On Japanese Politics:
  • “Japan needs more foreigners, not fewer, to keep its economy going.” — Moeka Iida [19:15]
• On Community Health:
  • “Even though you don’t know anyone here, it feels like you’re running with a group of friends and they’re strangely addictive, aren’t they?” — Parkrun Participant [22:20]

Key Timestamps

• [04:10] Mercosur-EU deal background and content
• [05:55] Why farmers delayed the pact for decades
• [07:54] The political negotiation and final EU vote
• [10:03] The geopolitics and global trade context
• [12:36] Japan’s “foreigner problem” in politics
• [14:58] How tourism and investment shape the debate
• [16:38] Economic realities behind anti-foreigner sentiment
• [18:18] Japan’s policy responses
• [20:17] Parkrun basics and growth
• [21:43] Public health benefits
• [22:30] Inclusivity and social impact
• [23:46] Tackling loneliness and social prescribing
• [24:30] Expanding Parkrun into new communities

Tone & Style

The hosts maintain a mix of wry skepticism, deep expertise, and clarity, often highlighting the political theater behind economic decisions or how individual initiatives become social phenomena.

Summary Conclusion

This episode examines how the world’s biggest trade deal reflects new geopolitical realities, how Japan grapples with necessary but contentious demographic change, and how Parkrun’s grassroots inclusivity became an accidental pillar of national health strategy.

For anyone seeking sharp insight into today’s shifting politics, economics, and social innovation, this episode offers both breadth and depth, with human stories underscoring every trend.