The EU–Mercosur Trade Agreement is a comprehensive trade and partnership deal between the European Union and the Mercosur bloc, consisting of Argentina, Brazil, Paraguay, and Uruguay. Negotiations began in 1999 and concluded politically in December 2024 after more than two decades of intermittent talks.

The agreement is designed to liberalize trade, establish rules for investment and public procurement, and create a structured political partnership between the two regions.

What Is Mercosur

Mercosur is a South American customs union founded in 1991. Its core objective is to promote free movement of goods, services, and factors of production among its member states, while applying a common external tariff to non-members.

For the EU, Mercosur represents a large and growing market of more than 260 million people and a major supplier of agricultural and industrial goods.

What the Agreement Covers

The agreement consists of three main pillars:

  • Trade: Gradual elimination of tariffs on most goods, including industrial products, agricultural goods, and processed food.
  • Political dialogue: Regular institutional cooperation on foreign policy, security, and governance.
  • Cooperation: Frameworks for collaboration on sustainability, labor standards, environment, and technical assistance.

In practice, the trade pillar is the most contentious and economically significant part.

Trade Liberalization in Practice

Once in force, the agreement would remove tariffs on approximately:

  • 90 percent of EU exports to Mercosur
  • 91 percent of Mercosur exports to the EU

Sensitive agricultural products such as beef, poultry, sugar, and ethanol are subject to quotas, transition periods, and safeguard mechanisms rather than full liberalization.

Environment and Sustainability

Environmental protection has been a central political issue in the ratification debate. The final package includes:

  • Commitments to implement the Paris Climate Agreement
  • Provisions on forest protection and sustainable supply chains
  • An additional political instrument addressing deforestation and labor standards

These commitments are politically binding but remain subject to enforcement debates.

The agreement is split into two legal instruments:

  • A Partnership Agreement, covering political and cooperation matters
  • An Interim Trade Agreement, covering trade provisions only

The Interim Trade Agreement can enter into force after approval by the EU Council and the European Parliament. Full entry into force requires ratification by all EU member states and Mercosur national parliaments.

Why the Agreement Is Controversial

The main areas of contention include:

  • Impact on EU farmers and agricultural markets
  • Environmental enforcement and deforestation risks
  • Regulatory standards and reciprocity
  • Political opposition in certain EU member states

These issues have led to delays despite the conclusion of negotiations.

Current Status

As of early 2026, the agreement has been politically concluded but not yet signed or ratified. Additional safeguard regulations and political assurances are being finalized before the approval process proceeds.

This page will be updated as the ratification process advances.