The European Union and the member states of the Mercosur bloc — Argentina, Brazil, Paraguay and Uruguay — have today, May 1, 2026, activated the provisional application of the interim trade agreement signed in December 2024. This is considered a historic moment by European officials, after more than two and a half decades of negotiations.

The application is currently provisional: full entry into force remains subject to a vote in the European Parliament, which has referred the agreement to the Court of Justice of the EU regarding its compatibility with the European treaties. The legal process may take over a year.

The agreement will gradually eliminate import duties on more than 91% of EU goods exported to Mercosur, opening a common market of over 700 million consumers. As of today, tariffs on key European exports — automobiles, pharmaceuticals, wine, spirits and olive oil — are reduced or eliminated. On the other hand, Mercosur products such as beef, poultry, sugar, eggs and citrus fruits will gain access to the European market under more favorable conditions, based on negotiated tariff quotas.

In February 2026, the European Parliament approved safeguard clauses requiring the European Commission to launch an investigation if imports of sensitive agricultural products increase by 5% compared to the three-year average and if import prices are 5% below EU domestic prices. The mechanism allows for the temporary suspension of tariff preferences.

The agreement also protects 344 European geographical indications — including Parmigiano Reggiano and Bordeaux — which will benefit from legal recognition on South American markets. The European Commission estimates that annual EU exports to Mercosur will reach €50 billion by 2040, 39% higher than the current level.

President of the European Commission, Ursula von der Leyen, marked the day through a videoconference with the leaders of the four Mercosur states, stating that the agreement represents good news for EU businesses of all sizes, for consumers, and for farmers.

(Photo: AI GENERATED)