The Council greenlights the signature of the EU-Mercosur partnership and trade agreement

13 January 2026

After more than 25 years of negotiations, the European Commission has finally endorsed the controversial EU-Mercosur trade agreement. This deal aims to reduce customs duties and expand market access for goods and services between the European Union and the Mercosur bloc, which includes Argentina, Brazil, Paraguay, and Uruguay.

The European Union seeks to increase exports by European manufacturers and farmers, particularly for automobiles, machinery, chemicals, and beverages. Meanwhile, Mercosur countries will benefit from tariff reductions that will improve access to the EU market for agricultural products such as beef, poultry, and sugar.

Critics argue that Mercosur producers operate under lower labour, environmental and food safety standards. Hormones and pesticides used in animal breeding and intensive farming are key areas of concern. Although EU rules will not change under the new agreement, food imports may significantly increase, highlighting the need for strong border controls.

The EU and Mercosur partners will soon sign the agreement. The European Parliament still needs to give its consent before it is formally concluded.