The EU-Mercosur trade deal that applies provisionally from 1 May 2026 creates a trading zone of 700 million people altogether. It is agreed between the EU and the South American trading bloc, which includes Argentina, Brazil, Paraguay, and Uruguay. The deal boosts Europe’s economy and global partnerships while protecting EU farmers, consumers and environmental standards. It
- removes trade barriers
- creates jobs and business opportunities
- ensures strong safeguards for EU rules and fair competition
By 2040, the EU-Mercosur trade deal is expected to deliver
- more than €77.6 billionincrease of EU GDP
- up to €50 billion+39% increase of EU annual exports
- up to 600 000jobs supported in Europe
Opportunities for EU businesses
Industrial goods
The EU-Mercosur trade deal lowers tariffs on
– cars (currently up to 35%)
– machinery (currently 14 to 20%)
– pharmaceuticals (currently up to 14%)
and many other products, saving EU firms more than €4 billion each year.
Critical raw materials
Mercosur is a key supplier of materials vital to the green and digital transitions. For instance, the EU imports 82% of its Niobium, to produce superconducting magnets for MRI scanners and cancer treatment, from Mercosur. The EU-Mercosur deal helps secure sustainable access to critical raw materials.
Public procurement
EU firms can bid on Mercosur government contracts.
Brazil’s federal procurement market alone exceeds €8 billion per year.
Benefits for EU farmers and consumers
The EU-Mercosur trade deal reduces former high tariffs on key EU agri-food products, such as wine and spirits (up to 35%), chocolate (20%), and olive oil (10%). EU exports of agricultural products are expected to increase by almost 50%.
Expected gains from reduced tariffs
Expected gains from reduced tariffs by 2040
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Most EU agricultural sectors are projected to increase their exportsView as data table, Expected gains from reduced tariffs by 2040
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The chart has 1 Y axis displaying Value. Data ranges from 42 to 605.
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The agreement also benefits the EU’s farmers and food producers, by
- supporting growth in exports of traditional, high-quality EU agri-food products
- protecting authentic EU products (Geographical Indications) from being imitated in Mercosur, by securing branding and market exclusivity, and thereby ending this unfair competition
- limiting preferential agri-food imports – beef and poultry imports are capped at only 1.5% and 1.3% of the EU total annual production. There are also additionally protected imports: rice, honey, ethanol
As the agreement is implemented, the European Commission will closely monitor market developments, especially in agriculture. Safeguards that protect sensitive European products against any surge will be applied if necessary, to protect European farmers and ensure a fair and balanced partnership with Mercosur. In addition, €6.3 billion safety‑net will protect EU farmers in case of market disturbances.
Maintaining the EU’s high standards on health and food safety
Europeans enjoy safe and healthy food thanks to the highest health and food standards in the world and this new agreement safeguards them. To make sure these standards are maintained
- only imports that meet the EU’s strict food safety rules are allowed
- the EU keeps full control when it comes to further strengthening the protection of European’s health and safety
- inspections and audits in exporting countries and at EU borders are being reinforced
The EU and its Member States check imports through a mix of controls both in foreign countries and at EU borders. These controls apply to all countries, irrespective of whether they have a trade agreement with the EU in place or not. These controls will increase in the next two years.
These measures ensure that imported food continues to be safe and healthy, while supporting food security.
Promoting shared values and sustainable development
The agreement is more than a trade agreement. It provides a framework for collaboration on pressing global issues such as human rights and climate change, by
- committing to effectively implement the Paris Climate Agreement
- offering concrete and measurable commitments to preserve the biodiversity of ecosystems and tackle deforestation
- strengthening workers’ rights
- encouraging responsible business conduct
- strengthening the protection and enforcement of intellectual property rights (IPR) – IPR intensive industries represent more than 47 % of EU GDP and more than 80 % of EU exports
Frequently asked questions
Why has the EU negotiated a partnership agreement with Mercosur?Has the EU concluded trade deals with other Latin American countries?What will the EU – Mercosur agreement deliver?How will the imports from Mercosur countries affect the EU market?Is the deal really about exchanging EU cars for agricultural products like beef?Has there been democratic control over how the agreement was concluded?Which agricultural products are the most sensitive and how are they protected?What does the EU currently import from Mercosur countries?What support is available for EU farmers who may be affected by the agreement?Will the agreement allow meat produced with substances banned in the EU, such as hormones or certain antibiotics?
Background
Negotiations on the EU–Mercosur agreement began in 2000 and have gone through multiple phases over the years. They culminated on 6 December 2024, when the European Union and the four founding Mercosur countries reached a political agreement on an ambitious, balanced, and comprehensive Partnership Agreement. On 9 January 2026, EU countries formally endorsed the trade agreement.
Following the provisional application, the Commission will continue to work to ensure its full conclusion in line with the EU Treaties.
Related links
Factsheet: EU-Mercosur partnership agreement
EU trade relations with Mercosur
EU-Mercosur: Text of the agreement
