EU–Mercosur Agreement provisionally applied from 1 May 2026
From 1st May 2026, the EU–Mercosur Agreement is provisionally applied, allowing companies to start using the agreement in practice. This marks an important milestone in EU–Mercosur trade relations, with many benefits becoming available from day one for businesses trading with Argentina, Brazil, Paraguay and Uruguay.
Immediate Tariff Reductions
The agreement introduces significant tariff cuts across a wide range of sectors:
- Zero tariffs on selected agricultural goods, including most sparkling wines, fruit and fruit preparations, vegetable oils, and certain pet foods.
- Progressive tariff reductions on most other agricultural products, such as biscuits and beer, with duties falling to 0% over the next 10 years.
- Substantial cuts on cars, with tariffs on electric vehicles and hybrids reduced from 35% to 25%, and on petrol and diesel cars from 35% to 17.5%.
- Lower tariffs on most industrial goods, including machinery, appliances, pharmaceuticals and textiles, with gradual elimination over the coming years.
- New access to tariff‑rate quotas for products such as cheese, chocolates and garlic.
- Protection for 344 EU geographical indications, safeguarding iconic products like Prosciutto di Parma and Comté cheese.
These changes are expected to improve competitiveness for EU exporters and reduce costs across supply chains.
Easier Trading Conditions
Beyond tariffs, the agreement significantly improves the overall business environment:
- Access to Mercosur services markets, offering new opportunities for EU service providers.
- Access to Mercosur government procurement, opening public tender opportunities across the region.
- Easier temporary movement of people for business purposes, facilitating short‑term travel and on‑site activities.
- Modernised rules of origin, helping companies better qualify for preferential tariffs.
- Greater legal certainty, supported by a dedicated dispute settlement mechanism.
- Simplified labelling requirements and closer alignment with international standards.
Together, these measures are designed to reduce administrative burdens and make cross‑border trade more predictable and efficient.
Updated Tools and Further Support
The Access2Markets website has been fully updated with detailed information on trading conditions under the EU–Mercosur Agreement, including tariff schedules and rules of origin for each partner country.
To support businesses in understanding and using the agreement, the Enterprise Europe Network will host a dedicated webinar on 6 May 2026 at 16:00 (Brussels time), providing practical guidance and an opportunity to ask questions directly.
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