Mercosur Prepares for Launch of New Beef Export Quota to the EU

The trade agreement between MERCOSUR and the European Union entered into provisional force on May 1, 2026, and some duty-free shipments from Uruguay have already been sent to Europe. However, the new benefits for beef exports will only become available in June after the EU completes the allocation of import licenses among European importers.

The main focus of Mercosur countries is currently on the beef market, which remains one of the region’s key export products. According to Uruguay’s Deputy Foreign Minister Valeria Csukasi, the first agreements under the new quota are expected from June 1. Until then, the EU must finalize the technical distribution of quotas among importing companies.

The new system предусматривает gradual expansion of export volumes over five years in six stages. In 2026, from May through December, Mercosur countries will have access to a quota of 6,050 tonnes of chilled beef and 4,950 tonnes of frozen beef, totaling 11,000 tonnes carcass weight equivalent. Supplies will be handled on a “first come, first served” basis without any fixed allocation among member countries.

In 2027, the quota will increase to 33,000 tonnes, while by the end of the transition period in 2031 the total quota will reach 99,000 tonnes. Of this volume, 54,450 tonnes will account for chilled beef and 44,550 tonnes for frozen products. Exporters will benefit from a preferential tariff rate of 7.5%.

Despite the additional month before the quota becomes operational, Mercosur countries have not yet reached an internal agreement on how to divide export volumes. As a result, companies from Uruguay, Brazil, and Argentina are effectively preparing for competition under a “law of the jungle” scenario. Uruguay’s Economy Minister Gabriel Oddone stated that the country remains in a relatively strong position thanks to its well-established trade channels with Europe and the private sector’s experience operating under a “first come, first served” system.

Tags: Brazil, EU, Beef cattle, Argentina, Uruguay