The EU-Mercosur Agreement

In brief

The agreement between the EU and Mercosur was negotiated for more than 25 years. Negotiations were politically concluded on December 6, 2024 in Montevideo. The agreement consists of two legal instruments:

• The EU-Mercosur Partnership Agreement (EMPA) covers political dialogue, cooperation and trade. It is a mixed agreement and has to be ratified by all 27 member states.
• The Interim Trade Agreement (iTA) contains only the trade part, which falls under the EU's exclusive competence: tariffs, rules of origin, customs procedures, services and public procurement. It expires as soon as the EMPA enters into force.

For companies, the Interim Trade Agreement is what counts right now. The Council of the EU authorized its signature and provisional application on January 9, 2026. It was signed on January 17, 2026 in Asunción. Since May 1, 2026, it has been provisionally applied between the EU and Argentina, Brazil, Paraguay and Uruguay.

Provisional application means the rules already apply even though ratification on the EU side is not yet complete. Customs authorities apply the preferential rates, and companies can rely on them. The political debate in some member states continues, but for now it does not change how the agreement is applied.

What applies since May 1, 2026

According to the European Commission, provisional application brings, among other things:

• the immediate removal or a sharp reduction of tariffs on key industrial goods, for example cars and pharmaceuticals;
• a first tariff cut for most agricultural and food products;
• access to the first volumes of the tariff-rate quotas for sensitive agricultural products;
• access to public tenders on both sides;
• protection for 344 EU geographical indications;
• safeguard mechanisms and tighter controls for sensitive agricultural sectors.

Many tariff cuts are phased in over several years. The rate for your product is set out in the agreement's tariff schedules. If you export soy from Paraná, beef from Uruguay, wine from Mendoza or honey from Paraguay, it pays to check both the schedule and the quotas.

Service providers will also see changes. The agreement contains rules on licensing procedures, non-discriminatory treatment and the temporary stay of skilled professionals. An engineering firm from Porto Alegre running a project in Portugal, or a software company from Montevideo with teams on site at a customer, can benefit. Access to public procurement works both ways: EU companies can bid for contracts in Mercosur and Mercosur companies for contracts in the EU, in each case within the lists agreed in the agreement.

Preferential tariffs only apply to goods originating in one of the parties. The exporter certifies origin with a statement on origin; on the EU side this runs through the REX registration system. Check the rules of origin for your product before you calculate with the preferential rate. For processed goods that use inputs from third countries, qualifying is not a given.

Timeline and open questions

The Court of Justice's opinion under Article 218(11) TFEU is still pending. Until it is delivered, the European Parliament cannot give its consent to the agreement. Provisional application continues regardless. The Partnership Agreement also needs ratification by every member state; there is no way to tell yet when it will enter into force.

Bolivia has been a full member of Mercosur since 2024 (instrument of ratification deposited in July 2024), with a transition period for adopting Mercosur law. It is not a party to the agreement with the EU.

Chile, Colombia, Peru and Ecuador

The associated states have their own agreements with the EU, which have been in place for some time.

The agreement with Chile replaces the trade part of the 2002 Association Agreement and includes chapters on energy and raw materials and on sustainable food systems, among others. The agreement with Colombia, Peru and Ecuador contains a title on trade and sustainable development that refers to the ILO core labor standards and to international environmental agreements.

For exporters from these countries, the same applies as for Mercosur: the agreements cover tariffs and origin. A copper producer in Antofagasta, a banana exporter in Guayaquil or a coffee house in Huila still has to meet the EU's rules on products, data and supply chains in full.

What the agreement does not change

A trade agreement lowers tariffs and simplifies procedures. It does not exempt anyone from the EU's product, data protection and supply chain rules. All EU rules apply to goods and services from Mercosur exactly as they do to those from any other country:

• From December 30, 2026, soy, beef, coffee and wood need the evidence required by the EUDR.
• Since January 1, 2026, steel, aluminum and fertilizers have been subject to the Carbon Border Adjustment Mechanism.
• From December 11, 2027, connected products must conform to the Cyber Resilience Act.
• From December 14, 2027, products made with forced labor are banned under the Forced Labour Regulation.
• Food must meet EU standards; the sanitary and phytosanitary chapters speed up procedures but do not lower any requirements.

In the trade and sustainable development chapter, the parties commit to the ILO core labor standards and the Paris Agreement. The chapter on technical barriers to trade follows international standards and makes conformity assessment easier, but it does not replace CE marking.

First steps for exporters

1. Check the preferential tariff rate and the phase-in schedule for each product.
2. Find out whether your product meets the rules of origin, and set up your statement on origin.
3. For agricultural products, check whether quotas apply and how they are allocated.
4. Work out which EU rules apply to your product. The tariff advantage is worth nothing if the buyer cannot purchase because evidence is missing. Ask your most important buyers directly which documents they will expect from 2027.
5. Prepare the certificates that EU customers in your industry expect, such as ISO 9001, food safety or ISO/IEC 27001.

Buyers rarely ask for one document only. Certificates, supplier self-assessments and evidence for individual EU rules tend to arrive at the same time. A GRC platform such as Sightadel keeps the tasks, evidence and supplier assessments for this in one place.

The free EU Readiness Check shows how well prepared you are for EU customers. You will find country-specific details on the pages for Argentina, Brazil, Paraguay and Uruguay.

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