The trade agreement between the EU and MERCOSUR is aimed at deepening economic ties

According to a statement from the European Commission, the European Union and four MERCOSUR countries, namely Argentina, Brazil, Paraguay and Uruguay, have reached a partnership trade agreement aimed at strengthening and expanding economic relations.

The EU is MERCOSUR's second largest trading partner in goods, with exports of 57 billion euros in 2024. The EU accounts for a quarter of MERCOSUR's total trade in services, with EU exports to the region amounting to €29 billion in 2023.

Market access and tariff reduction

The EU-MERCOSUR Trade Agreement aims to eliminate or significantly reduce high tariffs on goods sold between the EU and MERCOSUR countries. This includes enabling EU exporters to save more than €4 billion a year in customs duties, while reducing trade costs and facilitating cross-border trade.

The objectives of the new trade agreement between the EU and MERCOSUR are:

• increasing bilateral trade and investment, as well as reducing tariff and non-tariff trade barriers, especially for small and medium-sized enterprises;
• creating more stable and predictable trade and investment rules through improved and stricter regulations;
• promoting shared values and sustainable development, including by strengthening workers' rights, combating climate change, ensuring environmental protection, and encouraging responsible business conduct.

The agreement represents a win-win for both the EU and MERCOSUR, creating