The long-awaited trade agreement between the European Union and Mercosur (Argentina, Brazil, Paraguay, and Uruguay) has entered into force on a provisional basis as of May 1, 2026, pending a ruling from the EU Court of Justice requested by the European Parliament.
The interim application follows a political push led by the European Commission President Ursula von der Leyen, who activated a clause allowing temporary implementation. Approval was secured from both the European Parliament and EU member states, averting delays that had threatened to stall the deal indefinitely earlier this year.
A 25-YEAR NEGOTIATION REACHES THE FINISH LINE
After a quarter-century of talks, the agreement connects a market of roughly 720 million people, accounting for around 20% of global GDP (2025 data). It gradually eliminates tariffs on 91% of EU exports to Mercosur and 95% of Mercosur exports to the EU.
Key EU exports set to benefit include automobiles, pharmaceuticals, wine, spirits, and olive oil. Current tariffs in Mercosur have been as high as 35% on cars, 14–18% on auto parts, 35% on leather goods, and up to 18% on chemicals and pharmaceuticals.
From the South American perspective, the deal expands access to EU markets, particularly for agricultural goods. Major exports such as fresh beef, poultry, and sugar will benefit from duty-free quotas and significant tariff reductions.
GEOGRAPHICAL INDICATIONS AND ITALIAN PRODUCTS
The agreement also strengthens protections for 340 European food and beverage Geographical Indications, including 57 Italian PDO and PGI products, offering enhanced safeguards for branded regional specialties.
Industry leaders highlight the strategic value of the deal. Graziano Messana, President of the Italian Chamber of Commerce in São Paulo, Brazil, described the agreement as a structural framework for long-term investment. “The agreement is a project of commercial architecture. Its great strength is that it creates ‘predictability’,” he said. “In a world marked by geopolitical shocks, predictability is a rare and valuable resource. Any productive investment depends on it.”
Messana also emphasized the complementary nature of trade flows: “We are talking about Italy, France, and Brazil. For the two European countries, wine and cheese exports will strengthen. Brazil exports grains, biofuels, and soy. The reciprocity of benefits is evident. Resistance has been largely ideological—there is no overlap.”
While the agreement promises to reshape transatlantic trade by removing long-standing tariff barriers, its full implementation remains contingent on legal and political developments within the EU. For now, businesses on both continents are preparing to capitalize on one of the largest trade frameworks in operation today.
L’articolo EU–Mercosur Trade Deal Takes Effect proviene da Italianfood.net.