Mercosur 2026: Provisional application and perspectives

The struggle for the agreement between the EU and the Mercosur states resembles a high-stakes drama. After all, it will affect nearly 700 million people. 

The EU-Mercosur Partnership Agreement (EMPA) has been under negotiation since July 1999. It was refined for decades and finally a two-step plan was developed: Until the EMPA comes fully into force, the Interim Trade Agreement (iTA) will apply.

The signing took place after some concerns in Europe on January 17 in Asunción, Paraguay. But already on January 21, the EU Parliament had referred the agreement to the European Court of Justice. This delays the ratification in the EU – however, the free trade agreement is applied provisionally. 

On February 26, 2026, Uruguay was the first to ratify the agreement, and two hours later, Argentina followed suit with a clear majority. On the following day, the EU published the associated legal texts, which allow for the provisional application to begin "on the 1st day of the second month following mutual notification". On March 4, the Senate in Brazil also approved the agreement, and ratification in Paraguay took place on March 17. This means that the agreement has been fully ratified on the Mercosur side. 

The EU subsequently confirmed the provisional application by transmitting a verbal note to Mercosur confirming the provisional application from May 1, 2026. 

The greatest mutual benefit of the joint trading zone is that over a period of ten years, more than 90 percent of EU and Mercosur export duties will be gradually reduced and eliminated.

The EU Commission identifies three major opportunities for Europe:

• Duty reductions: Customs duties on cars (currently up to 35 percent), machinery (currently 14 to 20 percent), pharmaceuticals (currently up to 14 percent), and other products are to be reduced. Overall, EU companies could save more than 4 billion euros annually.
• Critical raw materials: Mercosur supplies raw materials that are significant for the green and digital transformation. With the agreement, the EU gains sustainable access to these. Example: 82 percent of niobium used in the EU, for example for superconducting magnets, comes from Mercosur countries.
• Public procurement: EU companies can participate in public tenders in Mercosur countries.

The agreement is primarily intended to benefit small and medium-sized enterprises. However, European agriculture will also benefit: Duties on wine (27 percent), spirits (35 percent), or olive oil (10 percent) from the EU will be reduced, and regional specialties, which include Black Forest ham or Lübeck marzipan, will be protected.

In return, the EU grants lower duties on certain agricultural products from the Mercosur states – while setting import quotas for beef, poultry, sugar, and ethanol. In addition, a safeguard mechanism that can suspend quotas was implemented, and additional import controls were agreed upon. A crisis fund for farmers is also available. 

With the AEB software Origin & Preferences , companies can manage proofs of origin, determine the preferential origin of goods, calculate preferences, and thereby help their customers save on import duties.

This solution is constantly being further developed. It supports the provisional application of the EU-Mercosur trade agreement and helps companies take advantage of customs preferences. Contact us to talk about it.