EuroWire, BRUSSELS: European Union ambassadors on Friday gave provisional approval for the bloc to proceed with the signing of the EU-Mercosur trade agreement, marking a major procedural step toward formalising the largest trade accord ever concluded by the EU after more than two decades of negotiations.
The decision by the EU’s Committee of Permanent Representatives clears the way for the European Commission to sign the agreement with the Mercosur bloc, which comprises Argentina, Brazil, Paraguay and Uruguay. The deal, first politically agreed in principle in 2019 and later revised, would create a free trade area covering a combined population of more than 700 million people and a significant share of global economic output.
Under the agreement, the EU and Mercosur would gradually remove tariffs on the majority of goods traded between the two regions. European exporters are set to benefit from reduced duties on industrial products including cars, machinery, chemicals and pharmaceuticals, while Mercosur exporters would gain increased access to the EU market for agricultural products such as beef, poultry, sugar and soy-based goods within defined quotas. The pact also includes provisions on services, public procurement, intellectual property and regulatory cooperation.
EU officials said the provisional approval reflects completion of internal procedures required for signature at the EU level. The agreement still requires the consent of the European Parliament before it can enter into force. Depending on its final legal structure, parts of the broader association agreement linked to the trade pact may also require ratification by national parliaments in EU member states.
The Mercosur agreement is the EU’s most extensive trade accord in terms of population covered and one of its most complex, reflecting prolonged negotiations that began in 1999. Talks stalled for years over differences related to market access, agricultural protections and environmental standards, before being revived and updated to reflect changes in global trade rules and sustainability commitments.
Environmental and regulatory provisions within the pact
Several EU member states have expressed reservations over the agreement, particularly regarding its potential impact on the agricultural sector. France, Ireland, Austria and Poland have raised concerns about increased imports of agricultural goods and the ability of Mercosur producers to meet EU standards on food safety, animal welfare and environmental protection. Farming groups across parts of Europe have staged protests opposing the deal.
In response to these concerns, EU institutions incorporated additional commitments and safeguard mechanisms into the revised text. These include provisions linked to the Paris Agreement on climate change, mechanisms to address market disruption in sensitive sectors, and procedures allowing temporary measures if imports cause serious harm to domestic producers. EU officials have stated that existing health, safety and environmental standards will continue to apply to all imports under the agreement.
Supporters of the accord within the EU argue that it will strengthen trade ties with South America, provide EU companies with improved access to fast-growing markets, and reinforce rules-based international trade. Several member states, including Germany, Spain and Portugal, have publicly backed the agreement, citing economic benefits for exporters and broader cooperation with Latin America.
Mercosur economies expand entry into EU market
On the Mercosur side, the agreement is expected to expand access to the EU market, one of the world’s largest consumer blocs, and attract increased investment. Mercosur governments have stated that the deal would support economic integration and diversification, particularly for industrial and agricultural exports. The agreement also establishes frameworks for dialogue on labour standards, sustainable development and political cooperation.
The provisional approval by EU envoys authorises the European Commission to move forward with the formal signing process, which is expected to take place at a joint EU-Mercosur ceremony. Once signed, the agreement will be transmitted to the European Parliament for debate and a consent vote. Only after parliamentary approval can the trade provisions be provisionally applied or fully implemented, depending on the legal framework.
If completed, the EU-Mercosur agreement would join a series of major trade deals concluded by the EU in recent years with partners including Canada, Japan and Vietnam. It would represent a significant expansion of the EU’s trade network with Latin America and a milestone in relations between the two regions, following one of the longest negotiation processes in the history of EU trade policy.