For Mercosur, this means preferential access for its agribusiness and critical minerals, improving its position against other competing markets. For companies in the European Union, the estimated savings in customs duties could reach 4 billion euros annually. Companies in Mercosur will face rigorous European standards in terms of traceability, labor rights, and anti-deforestation policies, which will require structural adjustments in their production models. Likewise, tariff liberalization will increase competitive pressure on Mercosur's manufacturing sectors, such as footwear and metalworking.
Key points and opportunities for companies under the EU-Mercosur Agreement The alliance between the European Union and Mercosur will create a market of 780 million people, eliminating up to 90% of bilateral tariffs. In turn, Mercosur mainly exported agricultural products, minerals, and pulp for a value of 56 billion euros.
Liberalization opportunities and strategic security The analysis titled 'Between openness and competitiveness: trade perspectives of the EU–Mercosur Agreement', prepared by Juan Ignacio Di Meglio, Senior Director of Corporate Affairs at LLYC in Argentina, highlights that the pact will eliminate or reduce more than 90% of bilateral tariffs. In contrast, the European agri-food sector could be pressured by the massive entry of products such as meat and soy from South America.
The ratification process and the Interim Agreement The full ratification of the agreement faces political obstacles in Europe, with opposition from countries like France, Poland, and Austria. As an alternative to avoid delays, an Interim Agreement (iTA) has been proposed that would allow the immediate application of the commercial part from 2026, following the approval of the European Parliament. Furthermore, the agreement establishes a predictable regulatory framework in areas of intellectual property and public procurement, which could double the flows of European Foreign Direct Investment (FDI) in the region.
Risks and challenges in sustainability Despite the economic advantages, the report identifies risk factors that could condition the success of the treaty. However, in the South American bloc, the lack of supranational institutionality requires each State to ratify the document individually.
Recommendations for business adaptation To capitalize on the benefits of the agreement, Di Meglio suggests that economic actors must adopt a proactive strategy focused on the following points: • Environment monitoring: Tracking legislative dynamics and ratification deadlines to anticipate regulatory changes. • Competitive analysis: Identifying new market niches and strategic alliances. • Regulatory compliance: Adjusting logistics and productive processes to meet sanitary and environmental standards. • Modernization: Investing in technology and sustainability, exploring green financing options. The author of the report emphasizes that the success of this integration will depend on the strategic response of companies to turn trade openness into innovation and sustained investment.
This association opens a potential market of 780 million people, promising a profound transformation in birregional trade relations, although its final implementation still depends on a process of ratification and technical adaptation by member countries. According to current projections, this treaty will boost an increase of nearly 40% in the commercial exchange between the two regions. The sectors with the greatest projected benefits include the automotive, pharmaceutical, and machinery manufacturing industries.
