EU–Mercosur trade deal: why it mattersThe EU-Mercosur trade deal creates the world's biggest trading zone, with 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 aims to boost Europe’s economy and global partnerships while protecting EU farmers, consumers and environmental standards. It will remove trade barrierscreate jobs and business opportunitiesensure 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 GDPup to €50 billion+39% increase of EU annual exportsup to 600 000jobs supported in Europe Opportunities for EU businessesIndustrial goodsThe EU-Mercosur trade deal will lower 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 materialsMercosur 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 will secure sustainable access to critical raw materials.Public procurementEU firms can bid on Mercosur government contracts. Brazil’s federal procurement market alone exceeds €8 billion per year. Benefits for EU farmers and consumersThe EU-Mercosur trade deal will reduce current 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 The agreement will also benefit EU's farmers and food producers, by supporting growth in exports of traditional, high-quality EU agri-food productsprotecting authentic EU products (Geographical Indications) from being imitated in Mercosur, by securing branding and market exclusivity, and thereby ending this unfair competitionlimiting 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 safetyEuropeans enjoy safe and healthy food thanks to the highest health and food standards in the world and this new agreement will safeguard them. To make sure these standards are maintained only imports that meet the EU's strict food safety rules will be allowedthe EU will keep full control when it comes to further strengthening the protection of European’s health and safetyinspections and audits in exporting countries and at EU borders will be reinforced 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 Agreementoffering concrete and measurable commitments to preserve the biodiversity of ecosystems and tackle deforestationstrengthening workers’ rightsencouraging responsible business conductstrenghtening 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?Mercosur is a big market for EU exports. Until now, EU firms exported to the four founding countries of Mercosur€55 billion in goods (in 2024)€29 billion in services (in 2023)European firms have been facing many trade barriers when exporting there, which makes it hard for them to compete under fair conditions. Even with these trade barriers, the EU accounted for 16.9% of Mercosur’s trade in 2023, and the trade deal could boost EU exports to this market of 295 million people. Has the EU concluded trade deals with other Latin American countries?The EU already has trade deals in place with nearly all other countries in Latin America. Securing an agreement with the Mercosur countries allows to further extend preferential access for EU exporters and strengthen political ties with Latin American countries.What will the EU – Mercosur agreement deliver?The EU's partnership agreement with Mercosur willmake it easier for EU firms to sell and invest in Mercosursecure sustainable access to raw materials, strengthening the EU’s economic securityhelp the EU and Mercosur shape global trade rules, in line with the highest EU standardssend a powerful signal in favour of rules-based trade and against protectionismfurther integrate value chains between the two regions, helping industries on both sides to stay competitive on the global marketpromote European values through commitments on sustainable development, climate change and worker’s rights More questions and answers 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. Related links Factsheet: EU-Mercosur partnership agreement EU trade relations with Mercosur EU-Mercosur: Text of the agreementEU trade negotiations and agreements EU’s trade policy
EU–Mercosur trade deal: why it mattersThe EU-Mercosur trade deal creates the world's biggest trading zone, with 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 aims to boost Europe’s economy and global partnerships while protecting EU farmers, consumers and environmental standards. It will remove trade barrierscreate jobs and business opportunitiesensure strong safeguards for EU rules and fair competition
Industrial goodsThe EU-Mercosur trade deal will lower 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 materialsMercosur 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 will secure sustainable access to critical raw materials.
Public procurementEU firms can bid on Mercosur government contracts. Brazil’s federal procurement market alone exceeds €8 billion per year.
