Overview
- The EU–Mercosur trade chapter entered into force on Friday, May 1st, beginning phased tariff cuts across a market of roughly 700–720 million people.
- All four Mercosur countries have ratified, while the EU awaits European Court of Justice review and final national approvals, so only the trade provisions apply for now.
- The agreement removes duties on more than 90% of goods over time, opening key opportunities for EU autos, machinery, chemicals and pharmaceuticals, with car tariffs phasing out over up to 15 years and 18 for electric cars.
- Farm access is capped by quotas and safeguards, including a 99,000‑tonne beef quota and the option to reintroduce duties if imports spike or prices slump, with impact reports at least every six months.
- Industry groups hail new export chances, farmers and environmental NGOs warn of pressure on EU agriculture and risks to the Amazon, and the Commission projects modest gains of about €48 billion for the EU and €9 billion for Mercosur by 2040.