Agreement between the EU and Mercosur comes into effect today

The agreement between the European Union and the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay) enters into force today, May 1, 2026.

The trade agreement is entering into force on a provisional basis and requires the consent of the European Parliament for its final conclusion, Euractive reports.

The agreement provides for an additional quota of 99,000 tonnes of Brazilian beef, which can be supplied to the EU market fresh and frozen, at a reduced customs duty of 7.5%, to be phased in gradually over 6 years and distributed between countries. This is around 1.5% of EU beef production.

As for poultry, duty-free imports to the EU are limited to 180,000 tonnes, to be phased in gradually over 5 years. According to the Commission, this is around 1.3% of EU production.

For sugar, no additional quotas are granted, except for 10,000 tonnes from Paraguay. The existing quota of 180,000 tonnes of cane sugar will be allowed duty-free, representing around 1.1% of EU sugar production.

Two ethanol quotas will be opened over a period of 5 years, totalling 650,000 tonnes, 450,000 tonnes duty-free, and 200,000 tonnes at a reduced duty.

The agreement provides for a duty-free quota for honey (45,000 tonnes over 5 years) and rice (60,000 tonnes over the same period).

At the same time, duties on olive oil imports from the EU will be reduced to zero over a period of 15 years, with no volume restrictions. In Argentina, where duties are currently 31.5%, they will be reduced slightly from day one to 29.4%, before being completely abolished in 2041. Cheaper olive oil in Mercosur markets is expected to be a lever to stimulate consumption.

Tariffs on European wines will also be reduced. For example, tariffs on premium sparkling wines will be eliminated immediately. Cheaper sparkling wines will become duty-free after 12 years. For other wines, including champagne-like drinks, duties will be eliminated gradually over 8 years. For spirits, the situation will develop more quickly – most duties will be eliminated within 4 years.

Cheeses have a longer journey ahead. A duty-free quota of 30,000 tonnes will come into effect after 10 years.

In the confectionery category, duties on European chocolate will be eliminated within 9 years. The transition period will be 14 years for white chocolate.

Tags: Brazil, EU, sugar, Argentina, wine, Paraguay, olive oil