EU–Mercosur Agreement Set to Reshape Trade and Supply Chains
- barboraarendasova
- 2 days ago
- 2 min read
On January 9, 2026, the Member States of the European Union politically approved the free trade agreement with Mercosur (Argentina, Brazil, Uruguay, and Paraguay), following more than 25 years of negotiations. The decision was taken in Brussels through a vote by EU ambassadors that achieved a qualified majority, despite opposition from several countries, mainly France and Poland.
This approval authorizes the European Commission to move forward with the formal signing of the agreement, but it does not imply its immediate entry into force.
Status of the process and next steps
1. Signing of the agreement
The President of the European Commission, Ursula von der Leyen, is authorized to travel to Asunción (Paraguay) to sign the treaty together with Mercosur leaders. This step confirms the political closure of the negotiation.
2. Legislative ratification
The agreement must be approved by the European Parliament and, depending on the final legal nature of the text, by some national parliaments of EU Member States. This stage may extend over several months.
3. Entry into force
Once ratified, the agreement will enter into force progressively, with tariff elimination schedules estimated at between 5 and 10 years, depending on the sector and the product.
Impact by market - European Union
Positive effects
Reduction and elimination of tariffs on industrial goods, including automobiles, machinery, chemicals, and pharmaceuticals.
Access to public procurement tenders in Mercosur countries under equal conditions.
Protection of more than 340 Geographical Indications, strengthening the position of differentiated European products.
Critical aspects
Resistance from the European agricultural sector, particularly regarding sensitive products such as meat, sugar, and poultry.
Environmental and social impact concerns, which could influence the ratification process.
Mercosur Positive effects
Preferential access to the European market, which includes more than 700 million consumers.
Reduction of tariffs on agricultural exports, food products, and certain manufactured goods.
Improved competitiveness of exports of food products, ethanol, soybeans, meat, and minerals.
Critical aspects
Increased competition from European industrial products in local markets.
High environmental, sanitary, and phytosanitary requirements for entry into the EU market.
Sectoral impact Mercosur agribusiness
Improved market access conditions for meat, grains, rice, sugar, and biofuels.
Growth potential for exports of processed foods and value-added products, subject to compliance with EU regulations.
European industry and services
Greater access to South American markets for capital goods, automotive products, and pharmaceuticals.
Potential expansion of financial services, telecommunications, and transport services.
Minerals and critical energies
Facilitation of European access to strategic raw materials such as lithium and copper, linked to the energy transition and high-tech industries.
Implications for foreign trade operators
LATAM operators
Expected increase in trade flows destined for Europe.
Growing demand for regulatory compliance services, traceability, environmental certifications, and document control.
European operators
Development of new logistics corridors to South America.
Need for local partners and logistics structures adapted to the region.
For both blocs
Increasing relevance of rules of origin, sanitary regulations, and sustainability certifications as operational requirements.
Greater administrative complexity in bilateral trade operations.
Reference sources
European Commission – Directorate-General for Trade: factsheets and official documentation of the agreement.
Communications and reports from specialized media on the vote and ratification process (Reuters, La Nación, El Día).
Institutional statements from the European Commission and Mercosur authorities.
