The free trade agreement between Mercosur and the European Union, negotiated over more than twenty years and approved at the beginning of 2026, has entered its implementation phase. After internal approval within the European bloc, the agreement signed on Saturday, January 17, initiates ratification and regulatory procedures in the participating countries. The stated objective is to expand market access, reduce tariff barriers, and increase predictability in bilateral trade, with implications for agribusiness.
For fresh table grapes, the agreement provides one of the most open market access conditions within the agricultural chapter. According to information released by the Brazilian government and sector organisations, table grapes originating from Mercosur countries will have access to the European market without quota restrictions and with full elimination of the current import tariff of around 11 per cent. There will be no transition period for fresh grapes. Once the agreement enters into force following ratification and regulation, the tariff will be reduced to zero.
This framework reduces the cost of entry to the European market and alters relative competitiveness among suppliers. The absence of quotas removes volume limits, which may simplify export planning over the medium and longer term. Fresh fruit received different treatment compared with other agricultural products that remain subject to phased liberalisation or protective measures within the European Union.
A different structure applies to grapes destined for processing and to grape-based processed products, including wine and other beverages. The agreement does not provide immediate tariff elimination in these categories. Instead, it allows for gradual tariff reductions and improved access for European wines into Mercosur markets, including Brazil. This component has drawn attention within the Brazilian processing sector, particularly among wineries in the southern producing regions.
Increased access for European wines may raise competitive pressure in the domestic market through broader product availability and price positioning. As a result, producers and processors may need to review commercial and market strategies as implementation progresses.
Across the grape sector, both fresh and processing segments are monitoring developments, although commercial planning remains preliminary. Further detail is still required on timelines, regulatory procedures, rules of origin, sanitary protocols, and logistical conditions. These factors will determine how quickly trade flows adjust and which supply chains are positioned to respond.
As ratification advances, discussion among growers, exporters, and processors is expected to increase, with attention focused on operational requirements and market access conditions created by the agreement.
Source: HF Brasil
