The Agreement signed today will create one of the biggest trade zones in the world covering a market of around 700 million consumers. The Agreement will deliver substantial new commercial opportunities for companies across the EU, driving an estimated 39% increase in annual exports to Mercosur (a value of approximately €49 billion), while supporting hundreds of thousands of EU jobs.

The Agreement also sends a strong geopolitical signal, demonstrating the EU and Mercosur's shared commitment to multilateralism and the rules-based international order. At a time of global uncertainty and increasing fragmentation, this agreement underlines the value of cooperation, dialogue and international partnerships. The agreement presents significant opportunities for mutual gain through strengthened economic, geopolitical, sustainability, and security cooperation.

President of the European Commission Ursula von der Leyen, President of the European Council Antonio Costa, and leaders from Mercosur countries witnessed the signing of the EU-Mercosur Partnership Agreement (EMPA) and the EU-Mercosur Interim Trade Agreement by EU Trade Commissioner Maroš Šefčovič and his Mercosur counterparts. 

European Commission President, Ursula von der Leyen, said: “Today, two like-minded regions open a new chapter of opportunity for more than 700 million citizens. With this win-win partnership, we both stand to gain – economically, diplomatically and geopolitically. Our companies will create exports, growth and jobs. We will support each other in our clean and digital transitions. And our signal to the rest of the world is clear: the EU and Mercosur are choosing cooperation over competition, and partnership over polarisation.”

Fewer duties, more exports

The Agreement will create a wide range of economic opportunities in the EU by:

• Removing tariffs on EU exports, including agri-food and key industrial products such as cars, machinery, and pharmaceuticals, saving EU businesses €4 billion worth of duties per year;
  

• Making it easier, quicker and safer to invest in key supply chains, including critical raw materials and related goods;
  

• Strengthening economic security and supporting the digital and green transitions on both sides;
  

• Helping the EU and Mercosur to shape global trade rules in line with the highest EU standards.
  

A balanced deal for EU agriculture

The Agreement will open unprecedented access to the Mercosur region for European farmers and food producers. The deal is expected to increase EU agri-food exports to Mercosur by up to 50% by:

• Reducing tariffs on key EU agri-food products, such as wine, spirits, dairy, and olive oil;

• Protecting 344 EU Geographical Indications, high-value traditional food and drink products, from unfair competition and imitation.

At the same time, the EU has taken great care to ensure that sensitive agri-food sectors benefit from every necessary protection, thanks to the following measures:

• Carefully calibrated tariff rate quotas that limit market access of sensitive products imported from Mercosur;
  

• A legally binding safeguard mechanism that protects sensitive European products in case of a surge in imports from Mercosur countries;
  

• Enhanced controls preventing non-compliant products from entering the EU market, including more audits and checks in third countries, and strengthened controls at EU borders;
  

• Taking actions by the Commission to operationalise the commitment in the EU's Vision for Agriculture and Food, for a stronger alignment of production standards, such as pesticides and animal welfare, applied to imported products; and
  

• A €6.3 billion fund, the Unity Safety net as from 2028, as an additional layer of protection for our farmers in case of market disturbances.
  

Sustainability and environmental commitments

The Agreement is one of the most ambitious deals ever signed by the EU in terms of sustainable development, as it features:

• Ambitious and enforceable commitments on climate action, including the Paris Agreement as an essential element;
  

• Concrete commitments on sustainable development, including on women's economic empowerment and labour rights;
  

• A pledge to work towards climate neutrality by 2050; and
  

• A clear contribution for trade to the green transition.
  

Next steps

Following the signature of the EMPA, the EU and Mercosur will now follow their respective procedures to work towards the ratification of the Agreement.

On the EU side, the EMPA will be subject to ratification by all Member States, following their national procedures. At the same time, the ITA will follow EU-only ratification process as it falls under EU exclusive competences. This will require the consent of the European Parliament and the adoption of a decision on the conclusion by the Council, after which it will enter into force.

The iTA will expire once the EMPA enters into force.