The European Union and Mercosur have signed a Partnership Agreement (EMPA) alongside an Interim Trade Agreement (iTA), formalising a new framework for cooperation between the two regions. The agreements establish a trade area covering a combined market of around 700 million consumers and outline measures affecting trade, investment, regulatory cooperation, and sustainability.
According to the European Commission, the agreements are expected to lead to increased trade flows between the EU and Mercosur countries. EU exports to Mercosur are projected to rise, supported by the reduction or removal of tariffs on a range of products, including agri-food and industrial goods such as machinery, vehicles, and pharmaceuticals. The Commission estimates that EU businesses could save around €4 billion per year in duties as a result of tariff reductions.
The agreements were signed in the presence of European Commission President Ursula von der Leyen, European Council President Antonio Costa, and leaders from Mercosur countries. The signatories were EU Trade Commissioner Maroš Šefčovič and his Mercosur counterparts.
In the agri-food sector, the agreements are expected to improve access for EU exports to Mercosur markets. Measures include tariff reductions for products such as wine, spirits, dairy, and olive oil, as well as the protection of 344 EU Geographical Indications. At the same time, the EU has included provisions intended to limit the impact on sensitive agricultural sectors. These include tariff-rate quotas on selected imports, a safeguard mechanism in the event of import surges, strengthened controls on compliance with EU production standards, and a proposed €6.3 billion Unity Safety Net fund from 2028 to address potential market disturbances.
The agreements also contain provisions related to sustainability and environmental policy. These include commitments linked to climate action, labour rights, sustainable development, and cooperation on the green transition. Climate-related provisions reference the Paris Agreement and include a stated objective of working towards climate neutrality by 2050.
From an institutional perspective, the Interim Trade Agreement will follow an EU-only ratification process, requiring approval by the European Parliament and adoption by the Council. The broader Partnership Agreement will require ratification by all EU Member States in line with national procedures. The iTA will remain in force until the EMPA completes ratification and enters into effect.
The signing marks the conclusion of negotiations and the beginning of the ratification phase, during which both sides will determine the timeline for implementation of the agreed provisions.
For more information:
Olof Gill
European Commission
Tel: +32 2 29 65966
Email: [email protected]
www.ec.europa.eu
Marta Perez-Cejuela Romero
Tel: +32 2 29 63770
Email: [email protected]
