The EU-Mercosur agreement is an association and free trade agreement between the European Union (with its 27 member states) and the South American bloc Mercosur (comprising Argentina, Brazil, Paraguay, and Uruguay). It aims to create one of the world's largest free trade areas, encompassing over 700 million people and featuring very intense bilateral trade.
Main instruments of the EU-Mercosur agreement
It is a association and free trade agreement: lower import taxes, more trade and more cooperation between Europe and South America.
- EU-Mercosur Association Agreement (EMPA)
– Broad framework that includes political, environmental, human rights and trade cooperation. - Interim Trade Agreement (iTA)
– A provisional instrument with trade and investment commitments that can be applied before the EMPA comes into force.
It is designed to boost exports and industrial cooperation between Europe and South America.
The EU is projected to see increases in exports and job creation.
For Mercosur, it represents more favorable access to a high-purchasing-power market.
The EU seeks to diversify its trading partners beyond China and the US, strengthen transatlantic links and secure critical raw materials (such as nickel or lithium).
What does the EU-Mercosur agreement include?
1. Trade in products
- It will progressively eliminate more than 90% of tariffs between the two regions over a period of years.
- For the EU, it means opening markets for industrial products (cars, machinery, chemicals) and agricultural products (wine, olive oil, chocolates).
- For Mercosur, it allows exporting products (soybeans, sugar, meat) with higher quotas or lower barriers.
2. Agriculture
- There are limited quotas for sensitive products: 1.5% of total EU beef production is subject to a 7.5% tariff. Quotas for chicken, honey, rice, and ethanol are progressive.
- Safeguard clauses are included to react if there is actual damage to European sectors.
3. Standards
- The agreement maintains European requirements for health, food safety and the environment, it does not lower them.
- It also protects geographical indications (European products with designation of origin).
4. Sustainable development and climate
- Commitments are established to implement the Paris Agreement, combat deforestation and promote sustainable practices.
5. Services, investments and intellectual property
- It facilitates trade in services, investments, intellectual property, and access for companies to public tenders on both sides.
The formal signing of the Association Agreement and the Interim Trade Agreement between the EU and Mercosur took place on January 17, 2026.
The European Parliament has asked the Court of Justice of the EU for a legal review of the agreement, which may delay the process until 2027 or later.
Tariff elimination and trade liberalization do not happen immediately:
- La UE eliminará gradualmente aranceles sobre productos del Mercosur (aproximadamente 92%) en un plazo de hasta 10 años desde la entrada en vigor.
- Mercosur will gradually eliminate tariffs on EU products (approx. 91%) over a period of up to 10-15 years depending on sensitive product categories.
Protests that have taken place in Europe against the trade agreement between the European Union and Mercosur:
Mostly European farmers and ranchers, together with agricultural unions from countries such as Spain, France, Ireland, Greece, Belgium and other EU states.
- Fair competition and equal standards: They require that products imported from Mercosur comply with the same health, environmental and labor standards as European products.
- Protection of local agriculture: they warn that the entry of cheaper products could damage the profitability of family farms.
- Defense of food sovereignty: They believe that the EU should not prioritize trade if it jeopardizes local food production.
- Specific protections: They are asking for compensatory tariffs, safeguard measures and reinforcement of border controls.
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