EU-MERCOSUR TRADE AGREEMENT
A groundbreaking partnership
At a time of increasing geopolitical uncertainty, the EU-Mercosur Trade Agreement represents a golden opportunity to bolster Europe’s competitiveness. Given that Mercosur is already the EU’s second-largest trading partner in goods, enhancing this relationship would be a game-changer for the EU’s competitiveness and resilience. Now is the time to get it over the line.
After 25 years of negotiations, on 6 December 2024, the European Union and Mercosur (Argentina, Brazil, Paraguay, and Uruguay) countries reached a political agreement for a ground-breaking agreement. The proposed agreement includes a political and cooperation pillar and a trade pillar.
Key advantages
Diversification to mitigate geopolitical risks
We are at a crossroads, and Europe cannot afford to be hesitant. As our global competitors move swiftly to secure influence and market share, the EU must not squander this first-mover advantage. Bringing this agreement home would be a meaningful step towards a more autonomous, prosperous, and resilient European economy.
In the current geopolitical landscape, it is imperative that the EU seize this chance to strengthen its economy and competitiveness, and in turn gain negotiating leverage, increase productivity, and reduce the risk of damage and economic coercion. Finally, the deal will facilitate strategic cooperation in many areas ranging from climate change to economic security.
Boosted competitiveness through enhanced market access for goods and services
The agreement will open new and meaningful trade and investment opportunities, removing tariffs on over 91% of EU goods, including the progressive elimination of Mercosur tariff peaks of 35% for many sectors. As a result, European businesses will save over €4 billion annually and this will expand their access to Mercosur markets, which represent a combined GDP of €2.2 trillion. It will also open more opportunities to access services and public procurement markets.
Predictable access to critical raw materials.
The EU must strengthen its position in global supply chains and boost its resilience to future disruptions. Businesses will benefit from stable, predictable access to the critical raw materials that are indispensable for the green and digital transitions, of which Mercosur countries are major producers.
Lower costs through regulatory and standards alignment
The agreement streamlines customs procedures and aligns technical standards between the EU and Mercosur, making it easier for businesses to navigate markets without compromising quality or safety. This reduces barriers and lowers costs for exporters.
Dedicated support for SMEs
The deal includes a dedicated chapter on SMEs with improved market access, simplified compliance processes, and tailored support, helping them compete more effectively in both regions. It also includes access to critical information and tools to ease market entry.
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EU Mercosur deal: Now is the time!
Why is now the right time for the EU-Mercosur trade agreement?
What about the Amazon and sustainability?
How does it support workers and the green transition?
Our Deputy Director General, Luisa Santos, answers these key questions and explains why the EU-Mercosur agreement is a golden opportunity Europe cannot afford to miss.