Mercosur-EU Treaty

What is the Mercosur–European Union agreement?

A trade agreement between two of the world's largest economic blocs, connecting more than 700 million people

More than 700 million people

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Mercosur, Argentina, Brazil, Paraguay, Uruguay, Venezuela, Bolivia

The world's sixth-largest economy, with a total population of 300 million (450 million including associated members), Mercosur is the EU's tenth-largest trading partner in goods.
The EU is Mercosur's second most important partner in trade of goods

17% of all trade originating from Mercosur
The EU is the largest investor in Mercosur countries with an investment volume of around 390 billion euros
In 2024, EU trade with Mercosur amounted to more than 111 billion euros: 55.2 billion in exports and 56 billion in imports
More than 80% of trade flows occurred between the EU and Brazil
Between 2014 and 2024, trade in goods between the EU and Mercosur grew by more than 36%: imports grew by more than 50% and exports by 25%

What changes does the Mercosur-EU trade agreement bring?

It will create one of the world's largest markets, with a population of 780 million, and a tariff relief agreement for goods and services.

The two blocs represent approximately 25% of global GDP, 35% of global trade, and 10% of the world’s population.
The EU will immediately launch 76% of its products
Of these, 85% in the first year and 92% in 10 years grant preferential access to another 7.5%, only 0.5% are completely excluded
The immediate reduction of Mercosur will only affect 15% of trade; the rest will be distributed over maturities of 4, 8, 10, and 15 years.
Approximately 60% of EU imports will be liberalized in 10-15 years, reaching 91% (9% excluded).

Increase EU exports to Mercosur by 40% (€48.7 billion)

In particular, vehicles (+200%), chemical products (+50%) and machinery (+35%) and South American exports will increase by 17% (8.9 billion euros, especially in the agri-food sector)
Customs duties to the EU will be reduced by around 4 billion euros annually

Mercosur will eliminate import tariffs on passenger cars within 15 years, with longer timelines of 18 to 30 years for electric, hybrid, hydrogen and new technology vehicles

Specific bilateral safeguard measures for the automotive sector can be applied up to 18 years after the agreement enters into force
Reducing the “effective tariff” – for Mercosur, the effective tariff would go from 11% before the agreement to only 1%.
The EU would reduce the effective tariff from 4% to 2%.
Safeguard mechanism in case of an increase in imports from Mercosur that may cause or threaten serious injury
Continuous monitoring of certain agricultural products every six months