As of 1 May 2026, the EU-Mercosur Interim Trade Agreement between the EU and Mercosur has provisionally entered into force.
This agreement, which represents the result of more than 25 years of negotiations within EU-Mercosur relations, provides for the progressive elimination of tariffs on around 90% of traded goods, offering significant advantages for EU exporters.
The reduction of high Mercosur duties, currently among the most significant barriers to EU exports, could generate savings of over €4 billion annually for European businesses. Tariffs of up to 35% on automotive products, and between 14% and 20% on machinery, will be gradually eliminated, while duties on chemicals and pharmaceuticals will also be reduced progressively, enhancing EU competitiveness across strategic industries.
This also creates new opportunities in the agri-food sector through a broad opening of trade markets, while maintaining strict EU standards and protecting geographical indications, safeguarding the value and authenticity of European products. In addition, EU businesses will gain access to public procurement markets in Mercosur on equal terms with local operators.
In order to ensure a proper balancing between free trade and protection, a safeguard mechanism is also provided to address potential market imbalances, allowing the temporary suspension of trade preferences where necessary to safeguard the EU’s trade balance.
The agreement will enter into force once it has been ratified by the European Parliament, EU Member States, and the Mercosur countries.
Should you have any questions about how the EU-Mercosur agreement may affect your business or expansion strategy, our team is ready to provide expert legal advice and support. For dedicated assistance, please contact Martín Santiváñez at studio@becp.eu.
