The European Union and four Mercosur countries, namely, Argentina, Brazil, Paraguay and Uruguay, have reached a partnership trade agreement designed to strengthen and expand economic relations, according to a statement from the European Commission.
The EU is Mercosur’s second-largest trading partner in goods, with exports of €57 billion in 2024. The EU accounts for a quarter of total Mercosur trade in services, with EU exports to the region amounting to €29 billion in 2023.
Market access and tariff reductions
The EU-Mercosur trade agreement aims to remove or significantly reduce high tariffs on goods traded between the EU and Mercosur countries. This includes enabling EU exporters to save over €4 billion annually in customs duties, while reducing trade costs and simplifying cross-border commerce.
The goals of the new EU-Mercosur trade deal are:
- to increase bilateral trade and investment, and lower tariff and non-tariff trade barriers - notably for small and medium-sized enterprises;
- to create more stable and predictable rules for trade and investment through better and stronger rules;
- to promote shared values and sustainable development, including by strengthening worker’s rights, fighting climate change, ensuring environmental protection, and encouraging responsible business conduct.
The agreement represents a win-win for both the EU and Mercosur, creating opportunities for growth, jobs and sustainable development on both sides. It will also help secure sustainable access to raw materials, thereby strengthening the EU’s economic security and providing EU industry with much-needed critical raw materials;
Strategic objectives
EU policy documents frame the EU-Mercosur partnership agreement as a tool to deepen economic ties, boost sustainable growth, and strengthen global cooperation. The agreement also complements broader EU trade policy goals of diversifying economic partnerships and increasing resilience in international trade networks.