Overview
- The commercial chapter, which took effect Friday, begins tariff cuts on more than 90% of EU–Mercosur trade and turns on farm quotas such as 99,000 tonnes of beef at a 7.5% duty and 180,000 tonnes of poultry that drops to zero by 2031.
- EU and Mercosur leaders marked the start with a video call after the EU Council in January let the Commission apply the pact provisionally once the first Mercosur country ratified on February 27.
- European exporters gain early with lower barriers for cars, machinery, pharmaceuticals and services, as Mercosur phases out its 35% car tariff over up to 15 years and opens more public procurement.
- Argentina’s economy chief Luis Caputo says exports to the EU could rise 76% in five years and 122% in ten, led by farm goods and new flows in energy, copper and lithium.
- The deal still faces headwinds in Europe, with farm groups, French officials and Green MEPs questioning its safeguards and a pending EU court ruling and national votes leaving its long‑term fate unresolved.