EU Council approves signing of Mercosur trade deal

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The planned interim trade agreement with the countries of the Common Market of South America (Mercosur) – Argentina, Brazil, Paraguay, Uruguay and Venezuela, whose membership has been suspended since 2016 – aims to reduce tariffs and open up access to new markets for a wide range of goods and services. Sectors such as agriculture, the automotive industry, the pharmaceutical industry and the chemical industry will benefit from better trading conditions, it said. The agreement includes provisions to facilitate investment and remove barriers to cross-border trade in services, in particular in digital and financial services. The provisions on public procurement also allow EU companies to access public procurement procedures in Mercosur countries, they said. The trade agreement falls under the exclusive competence of the EU and therefore does not require ratification by EU member states, they said. The agreement also introduces safeguard measures to ensure that the EU can quickly address market disruptions resulting from imports of agricultural products, they said. Until the legislative framework is formally adopted following negotiations between the EU Council and the European Parliament, the European Commission will be empowered to apply bilateral safeguards to agricultural products under the trade agreement and to impose increased control requirements on products covered by tariff rate quotas. Member states can request the opening of investigations. “These temporary measures will provide a high level of protection for EU farmers and agri-food sectors during the transitional period,” they said.

According to the EU Council, these provisions will strengthen cooperation in areas such as sustainable development, environment and climate action, digital transformation, human rights, mobility, counter-terrorism and crisis management. The communication states that following Friday’s decision, the EU and Mercosur partners will sign the agreements. However, before the agreements can be formally concluded, the European Parliament must give its consent.

The partnership agreement will enter into full force once all EU Member States and the South American countries concerned have completed their ratification

The trade agreement will remain in force until the partnership agreement enters into force, it was informed. Ursula von der Leyen, President of the European Commission, issued a statement on Friday, stressing that at the very beginning of 2026, Europe has already sent a strong signal that it is committed to improving its competitiveness, boosting growth and creating opportunities for businesses and citizens. It has sent a signal that it is striving to diversify its trade relations and reduce its dependencies, she said. “In today’s increasingly hostile and utilitarian world, we are clearly committed to strengthening our international partnerships,” she said. She said that with the Mercosur agreement, which is a win-win for all, the partners will create a market of around 700 million people, the world’s largest free trade area. “Our message to the world is that partnership creates prosperity and openness creates development,” the head of the EU Commission added in her statement. António Costa, President of the European Council, welcomed the decision in a post on his social media page and stressed that the agreement is good for Europe. He highlighted that the agreement provides real benefits for European consumers and businesses, is important for the EU’s sovereignty and strategic autonomy, strengthens workers’ rights, environmental protection and the protection of European farmers. The agreement also confirms that rules-based trade partnerships are beneficial for everyone, the President of the European Council, which brings together the leaders of the EU member states, added in his message.

MTI