The European Union and four Mercosur countries—Argentina, Brazil, Paraguay and Uruguay—reached a political agreement on a landmark partnership on 6 December 2024.
On 3 September 2025, the European Commission adopted proposals for Council decisions on the signature and conclusion of two parallel legal instruments: the EU-Mercosur Partnership Agreement (EMPA) and an Interim Trade Agreement (iTA). The iTA will be repealed and replaced by the EMPA once the latter is fully ratified and enters into force.
On 9 January 2026, the Council adopted the decisions authorising the signature of both the EMPA and the iTA. The European Union and Mercosur formally signed the two agreements on 17 January 2026.
The EU is Mercosur’s second-largest trading partner in goods, with exports totalling €57 billion in 2024. It also accounts for around a quarter of Mercosur’s total trade in services, with EU exports to the region reaching €29 billion in 2023.
In addition, the EU is the largest foreign investor in Mercosur, with an investment stock of €390 billion in 2023. Despite the strength of this relationship, exporters and investors continue to face significant tariff and non-tariff barriers in Mercosur markets.
The EU-Mercosur trade agreement aims to:
increase bilateral trade and investment and reduce tariff and non-tariff barriers, notably for small and medium-sized enterprises;
provide more stable and predictable rules for trade and investment, including stronger provisions on intellectual property rights (such as geographical indications), food safety standards, competition and good regulatory practices;
promote shared values and sustainable development, including the strengthening of workers’ rights, action against climate change, environmental protection and responsible business conduct.
Overall, the agreement represents a win-win outcome for both the EU and Mercosur, creating new opportunities for growth, employment and sustainable development on both sides.