EU & MERCOSUR

The European Commission issued today a press statement noting that an agreement has been reached with Mercosur countries - Brazil, Argentina, Paraguay, and Uruguay – on a new partnership that promises significant benefits for businesses, consumers, and sustainability efforts on both sides.

The agreement eliminates tariffs that currently cost EU exporters €4 billion annually.  The By cutting red tape, the agreement opens new export opportunities for small and medium-sized enterprises (SMEs), making it easier for them to engage with Mercosur markets.

At its core, the deal elevates the Paris Agreement as a fundamental pillar of the EU-Mercosur partnership, reinforcing both regions’ dedication to combating climate change. Moreover, it includes concrete measures to tackle deforestation. The EU has also pledged €1.8 billion to support green and digital transitions in Mercosur countries as part of its Global Gateway initiative.

Furthermore, EU standards on food safety, animal health, and geographical indications are fully protected under the agreement. Mercosur exporters must meet EU requirements to access the market, ensuring the highest quality and safety for imported products. Sensitive sectors, including EU agriculture, are safeguarded while opening opportunities for increased agri-food exports.

The proposed EU-Mercosur agreement is composed of a political and cooperation pillar, and a trade pillar. The end of negotiations constitutes the first step in the process towards conclusion of the agreement. The official documents will be published online over the next days. Following final legal checks and translations, the agreement will be submitted to the EU Council and Parliament for approval.

Source: European Commission