The EU–Mercosur Interim Trade Agreement
We have previously informed on the Free Trade Agreement between the European Union (EU) and the Mercosur countries – Argentina, Brazil, Paraguay, and Uruguay. An agreement on the framework was reached on December 6th 2024. This has moved forward towards the signature of the EU Mercosur Partnership Agreement (EMPA) and the Interim Trade Agreement (iTA) between the two sides on January 17th 2026.
The EU has emphasised that the Agreement has now created one of the largest global economic zones, with 700 million consumers. Annual exports out of the EU are expected to rise by 39%, an approximate added value of 49 billion EUR. Businesses profit from tariff removals, as well as the protection of geographical indication for agricultural products, which was a point subject to a lengthy debate by the two negotiating sides.
Shortly after the signing the EMPA, as well as the iTA, have been passed by the European Parliament onto the European Court of Justice (ECJ) to undergo a ruling on its applicability as a trade agreement. The vote in parliament ended with a slim majority of 334 to 324 on January 21st.
If approved by the ECJ the EMPA would enter a lengthy ratification process as it would need to be ratified by each member state of the EU. As the Mercosur countries have signed the Agreement independently, it is considered ratified on their end. In the meantime, the iTA will be in force, as it only needs to be ratified once on the EU-level, allowing for the partial flow of goods and services to commence immediately.
The entire ratification process could take a few years, as the iTA was passed by a majority 21:5:1 vote, with Austria, France, Hungary, Ireland, and Poland voting against, and Belgium abstaining.
One of the key pillars of the EMPA is sustainability. Through the signature, both the EU and Mercosur have firmly committed to executing on their promises outlined by the Paris Agreement and the development of sustainable economies and trade. This includes provisions on the protections of biodiversity and a commitment to not lower environmental standards in the interest of competitiveness.
In terms of the agricultural debate, the protective provisions demanded by the EU, have left the Agreement with its limits. While geographic protections for 344 EU products remain in force and access to the Mercosur market will be easier, both sides can follow the precautionary principle, where they are free to adopt measures to protect human, animal and plant health, including in situations where scientific information is inconclusive. A provision some actors fear will be misused to limit market access in sensitive situations.
In summary, the EMPA is an important Agreement in global trade, opening up a free flow of goods and services between two large economic regions, but for now the iTA will be the provision, until all EU member states are on board.
Stefan Radaković