EU-Mercosur agreements explained
Two agreements frame EU-Mercosur relations within a modernised and comprehensive partnership, covering political dialogue and trade cooperation. The EU has also introduced specific rules to protect its farming sector.
A longstanding partnership
The EU and Mercosur, a South American trade bloc made up of Argentina, Brazil, Paraguay and Uruguay, are close allies and like-minded partners with a shared commitment to multilateralism and rules-based international trade. Although Bolivia became a full member of Mercosur in July 2024, the country is not part of the agreements, as the negotiations were largely concluded before its accession.
The EU-Mercosur relationship dates back to 1999, when the inter-regional framework cooperation agreement entered into force. Since then, negotiations between the EU and Mercosur on an association agreement have gone through different phases.
On 6 December 2024, the EU reached a political agreement with Mercosur on a comprehensive partnership agreement, which is made up of two pillars: one on political cooperation and one on trade and investment.
On 3 September 2025, the Commission proposed Council decisions on the signature and conclusion of two parallel but legally distinct instruments:
- the EU-Mercosur partnership agreement (EMPA), combining political dialogue, cooperation and trade
- the interim trade agreement (iTA), covering trade and investment commitments to apply ahead of the EMPA’s entry into force
On 9 January 2026, the Council gave the greenlight for both agreements to be signed. This was followed by the signing ceremony that took place in Paraguay on 17 January.
Once in force, the agreements will frame relations within a modernised and comprehensive partnership, foster more stable and predictable trade and investment rules and create the world's largest free-trade area, covering a market of over 700 million people.
Next, the European Parliament will be asked to give its consent so that the Council can conclude the agreements.
EU-Mercosur partnership agreement
The partnership agreement bring together political dialogue, cooperation and sectoral engagement under a single framework. It also includes trade and investment provisions, which will become fully applicable once the agreement is concluded and enters into force.
The partnership agreement will help strengthen cooperation in areas such as:
- sustainable development
- environment and climate action
- digital transformation
- human rights
- mobility
- counter-terrorism
- crisis management
It will also help foster closer coordination in multilateral fora and on global challenges including climate change, peacekeeping and migration and make it easier to share best practices on issues ranging from governance to technology innovation.
Interim trade agreement
The interim trade agreement (iTA) reflects the trade and investment liberalisation pillar of the partnership agreement and will act as a standalone agreement until the full partnership agreement enters into force. The aim of the agreement is to deliver the economic benefits of the negotiated trade commitments as early as possible.
The iTA paves the way for tariff reductions, opens access to new markets and enables better trade terms in key sectors such as agriculture, automotive, pharmaceutical and chemicals.
It also includes provisions on:
- investment facilitation
- removal of barriers to cross-border trade in services, especially digital and financial services
- government procurement, which will allow EU companies to access public tendering processes in Mercosur countries
It only needs to be ratified by the EU and not by individual member states. It will expire when the EMPA, which needs ratification by all member states, enters into force.
On 23 March 2026, the EU informed Mercosur countries about the provisional application of the iTA, in line with the Council's decision taken on 9 January 2026.
The iTA has applied provisionally since 1 May 2026, with tariffs on certain products removed as of day one, creating predictable rules for trade and investment.
EU-Mercosur trade: facts and figures
Safeguards for agricultural products
To protect the EU farming sector and certain sensitive farm products that may be exposed to competition from imports, the EU has introduced a dedicated Mercosur safeguards regulation, which transposes into EU law the safeguard provisions for agricultural products included in the EMPA and the iTA.
Specifically, the regulation sets out how the EU can temporarily suspend tariff preferences on agricultural imports from Mercosur if these imports harm EU producers. It builds on existing EU safeguard tools but introduces faster procedures and simpler triggers to launch investigations to protect EU farmers.
Until a permanent legal framework is adopted, the Commission can apply bilateral safeguard measures to agricultural products under the iTA, including imposing tariffs to counter import surges and/or price drops that disrupt local produce markets. In addition, enhanced monitoring requirements will apply for products subject to tariff-rate quotas such as beef, poultry, pork, sugar, ethanol, rice, honey, maize and sweetcorn.
Member states can also ask the Commission to initiate safeguard investigations. Should the Commission do so, it must inform the Council in a complete and timely manner about on any intended action.
On 5 March 2026, the Council formally adopted the regulation that implements the bilateral safeguard clauses for agricultural products. The regulation will apply to the iTA from its entry into force and will continue to apply once the EMPA enters into force.
Last review: 1 May 2026