The EU and Mercosur have signed a Partnership Agreement and an Interim Trade Agreement. The deal is set to boost EU exports by nearly 39%, strengthen economic and geopolitical ties, advance sustainability commitments, and protect sensitive sectors through calibrated safeguards and controls.
The EU and Mercosur have signed a Partnership Agreement and an Interim Trade Agreement. The deal is set to boost EU exports by nearly 39%, strengthen economic and geopolitical ties, advance sustainability commitments, and protect sensitive sectors through calibrated safeguards and controls.
The European Union (EU) and Mercosur signed a Partnership Agreement (EMPA) and an Interim Trade Agreement (iTA) on 17 January 2026, strengthening their economic, diplomatic and geopolitical relations.
The signed agreement will create one of the biggest trade zones in the world, covering a market of around 700 million consumers. The Agreement will deliver substantial new commercial opportunities for companies across the EU, driving an estimated 39% increase in annual exports to Mercosur (a value of approximately EUR 49 billion), while supporting hundreds of thousands of EU jobs.
Fewer duties, more exports
The Agreement will create a wide range of economic opportunities in the EU by:
- Removing tariffs on EU exports, including agri-food and key industrial products such as cars, machinery, and pharmaceuticals, saving EU businesses EUR 4 billion worth of duties per year;
- Making it easier, quicker, and safer to invest in key supply chains, including critical raw materials and related goods;
- Strengthening economic security and supporting the digital and green transitions on both sides;
- Helping the EU and Mercosur to shape global trade rules in line with the highest EU standards.
A balanced deal for EU agriculture
The Agreement will open access to the Mercosur region for European farmers and food producers. The deal is expected to increase EU agri-food exports to Mercosur by up to 50% by:
- Reducing tariffs on key EU agri-food products, such as wine, spirits, dairy, and olive oil;
- Protecting 344 EU Geographical Indications, high-value traditional food and drink products, from unfair competition and imitation.
At the same time, the EU has taken great care to ensure that sensitive agri-food sectors benefit from every necessary protection, thanks to the following measures:
- Carefully calibrated tariff rate quotas that limit market access of sensitive products imported from Mercosur;
- A legally binding safeguard mechanism that protects sensitive European products in case of a surge in imports from Mercosur countries;
- Enhanced controls preventing non-compliant products from entering the EU market, including more audits and checks in third countries, and strengthened controls at EU borders;
- Taking actions by the Commission to operationalise the commitment in the EU’s Vision for Agriculture and Food, for a stronger alignment of production standards, such as pesticides and animal welfare, applied to imported products; and
- A EUR 6.3 billion fund, the Unity Safety net as from 2028, as an additional layer of protection for our farmers in case of market disturbances.
Next steps
Following the signature of the EMPA, the EU and Mercosur will now follow their respective procedures to work towards the ratification of the Agreement.
On the EU side, the EMPA will be subject to ratification by all Member States, following their national procedures. At the same time, the ITA will follow EU-only ratification process as it falls under EU exclusive competences. This will require the consent of the European Parliament and the adoption of a decision on the conclusion by the Council, after which it will enter into force.
The iTA will expire once the EMPA enters into force.
