EU and Mercosur sign historic and ambitious partnership
Today, the European Union and Mercosur signed a Partnership Agreement (EMPA) and an Interim Trade Agreement (iTA), representing a historic milestone between the two regions, and an ambitious platform for strengthening their economic, diplomatic and geopolitical relations.
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 pound 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 Šefcovic 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 pound 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 pound 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.
For more information
Questions and answers
Reinforced controls on products imported into the EU – press release
Council vote – press release
EU-Mercosur trade relations
EU-Mercosur Agreement In Focus
Factsheet Key facts about the agreement
Factsheet on Agriculture
Factsheet Benefits and protection for European farmers
Factsheet on Food Safety
Factsheet on Sustainable Development
Factsheet on Critical Raw Materials
Factsheet on Services
Factsheet on Facts and Figures
Factsheets on benefits to EU Member States
Quote(s)
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.
Ursula von der Leyen, President of the European Commission
It was an honour to sign this historic agreement, a truly defining moment for Europe’s economic future. The EU-Mercosur Agreement is not only the world’s largest free trade partnership, but also a strategic investment in Europe’s competitiveness, global influence and credibility as a trusted trading partner. It will open significant new opportunities for our businesses, secure access to critical resources and deepen our partnership with Latin America for decades to come. My priority now is clear: EU companies must be able to benefit from this agreement as quickly as possible.
Maroš Šefcovic, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency
The EU-Mercosur agreement is a major boost for free trade, helps diversify our economic ties and reduces dangerous dependencies. In an shock-prone world, it sends a clear signal of Europe’s commitment to strong, reliable partnerships, based on shared values and principles.This agreement is about more than trade volumes. It is a geostrategic choice for Europe and marks the beginning of a new era in EU-Latin America cooperation.
Kaja Kallas, High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission
Since the start of my mandate, I have spoken with farmers across the EU. I have heard their concerns about the agreement with Mercosur, and I understand them. This is why we now have an unprecedented safeguard that will allow us to act quickly in the unlikely event of market disruption. We will closely monitor the implementation of the agreement and its impact on our markets. From the outset, the negotiations took our agricultural interests into account. Imports will remain limited, with sensitive products subject to carefully calibrated quotas introduced gradually. At the same time, this agreement will open up significant export opportunities for EU farmers and food producers, particularly in the wine, spirits, olive oil and dairy sectors. Our main iconic products, registered as Geographical Indications, will be protected in a market of 270 million consumers. Protection and benefits: this is the balance that this agreement offers to the EU agri-food sector.
Christophe Hansen, Commissioner for Agriculture and Food
Speech by President von der Leyen on the signature of the EU-Mercosur partnership agreement
‘Check against delivery’
President Peña,
President Milei,
President Orsi,
President Paz,
President Mulino,
President Costa, dear António,
Minister Vieira, dear Mauro,
Honourable Members of Parliament,
Excellencies,
Ladies and gentlemen,
It is an honour to be here with you in beautiful Asunción, in the heart of Latin America, and in the very room where Mercosur’s founding treaty was signed. This place carries history, it reminds us of a moment when nations in Latin America chose cooperation over division, rejected rivalry and reaffirmed democracy, and brought peoples together across borders and rivers. As a European, I recognise in that choice something familiar, and I deeply respect the ambition and courage it required. So my first message is a simple one: thank you for bringing us together and hosting us in this historic setting. Aguyje, Paraguay.
But this moment belongs to all the Mercosur nations: to Argentina, Brazil, Uruguay and Paraguay. Because this moment is not only about bringing countries closer together but about connecting continents, and each one of the Mercosur countries worked hard for this result. So today, in this room, we are signing again an important document, a new partnership between Mercosur and Europe. This deal has been in the making for 25 years. Many hands have worked tirelessly. It has survived changes of government, and a great many meetings. And we all know it took a final push, right up to the last moment, to bring us together here today. We are creating the largest free trade zone in the world, a market worth almost 20% of global GDP. Delivering untold opportunities for our 700 million citizens. This agreement sends a strong signal to the world. It reflects a clear and deliberate choice. We choose fair trade over tariffs, we choose a productive, long-term partnership, and above all, we intend to deliver real and tangible benefits to our peoples and companies.
Let me highlight three points. First, the economic benefits of this partnership. They are crystal clear. Already today, Europe is the second largest trading partner of Mercosur and Europe is the biggest foreign investor in the region. This deal will remove tariffs and other barriers to trade, it will open up public procurement. It will provide a clear rules-based framework to encourage investment and trade to flow. And this will greatly benefit companies on both sides, this includes the 30,000 European SMEs that are already exporting to this great region. And increased exports will create jobs, both here and in Europe.
My second point: I would like to highlight how this agreement will support our ambitions to protect nature and climate. There is a strong chapter on trade and sustainable development. We are committing to help each other to make the transition to climate neutrality. Europe will gain improved access to the raw materials we need for our transition, and European investment will support the Mercosur countries in their transition. This is how trade should be. Partners with complementary strengths are supporting each other. Our citizens can be sure we have the interests of their children and grandchildren high in our minds.
My third point: The geopolitical importance of this agreement cannot be overstated. We are creating a platform to work on a range of global issues, from protecting our precious natural environment to reforming global institutions. We will join forces like never before, because we believe that this is the best way to make our people and our countries prosper. And when our two regions speak with one voice on global issues, the world will listen.
Ladies and gentlemen,
I have been reading about the great Paraguayan poet Augusto Roa Bastos. He spent years of his life in Europe – in the French city of Toulouse. Not only did he build a family there, he also taught Latin American literature and Guaraní language to enthusiastic European students. His story is the story of so many people, not just here in Paraguay, but in Argentina, Brazil, Uruguay and all across Europe. People who travelled across the Ocean, loved our two continents and made both of them stronger. The ties between Mercosur and Europe run deep. We share culture, values and a similar path of regional integration. Today, we built on this with a partnership that reflects the true breadth and depth of our relations. We are turning our friendship into greater strength – for Mercosur and Europe alike.
So let me thank you once again for your hospitality. And long live our friendship Europe-Mercosur. Muchas gracias.
Statement by President von der Leyen with Brazilian President Lula da Silva
Dear President Lula,
You know I am always happy to come to Brazil. But today feels truly special. Because I know that between us, between our regions and our people, the best is yet to come. Tomorrow we will sign the EU-Mercosur agreement. But before that it was important for me to meet with you, President Lula.
For more than two decades, countless negotiators and their leaders worked on the EU-Mercosur agreement. It was 25 years in the making. And now we concluded it. It is the achievement of a generation. But the political leadership, personal commitment and passion that you have shown in the last weeks and months, dear Lula, are truly second to none. So, muito obrigada for your skilful steer throughout the negotiations. And for delivering this historic agreement. And I also want to thank all the negotiators for their exceptional work over so many years.
The EU-Mercosur agreement sends a powerful message. It says: welcome to the world’s biggest market and largest free trade zone on the planet. This is the power of partnership and openness. This is the power of friendship and understanding between peoples and regions across oceans. And this is how we create real prosperity – prosperity that is shared. Because, we agree, that international trade is not a zero-sum game. We are convinced, everyone can and must benefit – in terms of new jobs on both sides, better opportunities for our people and the business sector, and thus higher income. We want a world that is running on trust and teamwork. This is Europe’s ambition. And I know this is yours too.
Dear Lula, you are a leader deeply committed to the values we hold dear. Democracy, a rules-based international order, and respect. Respect for our planet, for communities, and for fellow nations. This is the leadership we need in today’s world.
Next year, we will celebrate the 20th anniversary of our strategic partnership with Brazil. So this agreement could not be more timely. It will multiply opportunities like never before. With mutual access to strategic markets. Clear, predictable rules. Common standards. And supply chains that become highways for investments. To me, that is the essence of rules-based trade. But our work goes on. The signature tomorrow will be only a first step. The next chapters are still to be written. The whole story will only be a complete success when people and businesses can feel the benefits of our agreement. And this should happen fast. When we deliver, on the EU-Mercosur agreement, this will be a success story written story by 700 million people.
Dear Lula,
I also welcome that Europe and Brazil are moving toward a very important political agreement on critical raw materials. It will frame our cooperation on joint investment projects in lithium, nickel and rare earths. This is key for our digital and clean transitions. And also, for our strategic independence in a world where minerals tend to become an instrument of coercion. Europe’s offer will always be different. We will always abide by the highest standards. In terms of transparency. In terms of respect for the environment. And we will always make sure that local communities are the main beneficiaries of the value created. So: everyone benefits. It is a true win-win. Because this is Europe’s way of doing business.
Obrigada, Amigo. And as I said: U melhior sta para vir.