Application of EU-MERCOSUR interim Trade Agreement on 1 May 2026

As from 1 May 2026, the Interim Trade Agreement (iTA) signed between the EU and Mercosur countries (Brazil, Argentina, Uruguay and Paraguay) will be applicable.

This Interim Trade Agreement was signed in January 2026, together with the EU–Mercosur Partnership Agreement ("EMPA") that covers political dialogue, cooperation and broader institutional provisions.

The iTA covers only trade and investment liberalisation and is implemented provisionally to offer immediate benefits to both parties while the full agreement is finalized, since full ratification is still subject to ongoing debate in the EU Parliament and potential CJEU rulings.

The Agreement establishes in Annex 2-A the preferential treatment applicable to goods to be imported into both territories. providing for:

• Appendix 2-A-1 to be applicable to Mercosur goods imported into the EU.
• Appendix 2-A-2 to be applicable to Union goods imported into a MERCOSUR country.

The tariff dismantling schedule starts the day the entry into force of the Agreement and will be applicable for a period of 15 years.

In addition, the iTA reduces non-tariff barriers to trade in goods and services, incorporates measures to facilitate trade in critical raw materials and includes environmental protection clauses.

Main benefits of the iTA on trade in goods

Tariff reductions on goods provided in the iTA are applicable as follows:

• For EU exports to MERCOSUR countries, the agreement removes import duties on over 91% of EU goods exported to Mercosur countries over a period of up to 10 years for most products. Duties for certain sensitive products will be liberalised over a longer phase-in period (up to 15 years).

EU products that will benefit from the iTA are:

• • agri-food products (olives and olive oil, beer, wine, cider, other beverages and food preparations),
  • cars and automotive parts,
  • machinery,
  • chemicals,
  • pharmaceuticals,
  • textiles and clothing.

• For MERCOSUR exports to the EU, the EU will progressively remove import duties on 92 % of imports from Mercosur countries and grant preferential access to another 7.5% (through tariff-rate quotas (TRQ) and other mechanisms) over a period of up to 10 years.

For key agricultural exports, the iTA provides for partial liberalisation through quotas rather than full tariff elimination.

It also introduces a bilateral safeguard clause making it possible to reverse tariff concessions in the event of a threat of serious injury to EU production:

• • vehicles and automotive parts
  • footwear, clothing and textiles
  • oil seeds and protein crops
  • hake, prawns and squid
  • coffee, tea and cacao
  • poultry, pork, sugar and honey – 0% duty within TRQ from day one,
  • beef – 7.5% duty within TRQ from day one,
  • industrial ethanol – 0% duty within TRQ from day one.

Furthermore, the Agreement protects more than 350 European geographical indications and 220 from MERCOSUR, especially for foodstuffs whose characteristics are linked to the area of production (e.g. a Parmigiano Reggiano from Italy or a Manchego cheese from Spain). The aim is to prevent the imitation of authentic EU and Mercosur products, guaranteeing the exclusivity of the brand and the market, thus consolidating trade in high-quality products of controlled origin.

EU requirements continue applying

EU marketing rules and border controls continue to apply to goods imported under the iTA.

Sanitary and phytosanitary (SPS) standards in the EU are the same for importers and domestic producers regardless of Trade Agreements. This means that animal, plants and food products placed on the EU market, domestically produced or imported from any third country (under a Trade agreement or not), must comply with the EU's SPS requirements.

EU animal welfare legislation also applies in relation to certain activities (e.g. slaughter, transport of live animals or welfare of laying hens).

Evidence of origin to claim for the iTA tariff preferences

Under the FTA, the claim by the importer for preferential tariff treatment is based on a statement on origin following the text of Annex 3-C of the Agreement, in which the exporter declares that the product is originating and includes the reference number by which it is identified:

However, for a maximum period of five years from the date of entry into force of the Agreement, the EU shall also acceptas a statement on origin a ‘certificate of origin’ indicating that the products imported into the EU meet the origin requirements established under the Agreement, in accordance with Annex 3-D published by Notice 2026/875.

It is important to note that, from the date of entry into force of the iTA, Paraguay will only issue statements on origin in the form of ‘certificates of origin’ of Annex 3-D.

The EU-Mercosur Trade Agreement boosts trade in further ways

The iTA aims to boost EU exports to Mercosur by:

• removing non-tariff barriers to trade in goods such as restrictive rules different from international standards, non-automatic import licences or burdensome conformity assessment procedures,
• eliminating discriminatory tax treatment on imported goods,
• facilitating trade in services and establishment in services and manufacturing,
• opening government procurement;
• making it easier for Small and Medium Sized Enterprises (SMEs) to trade,
• improving access to raw materials essential to the EU economy by lowering or removing export taxes and eliminating export restrictions and export monopolies

The agreement also boosts MERCOSUR exports to the EU mainly by:

• lowering tariffs (often via quotas)
• reducing trade barriers
• providing predictable access to the EU market with clear and simpler rules on customs procedures, rules of origin and documentation
• facilitating integration into EU supply chains

EU importers and exporters should prepare to take advantage of the provisional tariffs starting 1 May by reviewing the specific tariff reduction staging for their product lines.

From the moment the iTA comes into effect, the EU will have trade arrangements with every Latin American country except Bolivia, Cuba and Venezuela, giving it preferential access to markets representing 95% of the region’s gross domestic product (GDP).

Further information can be found in:

• EU DG TRADE – EU-Mercosur Partnership Agreement: Text of the Agreement
• EU-Mercosur agreement explained
• EU-Mercosur partnership agreement – Opening opportunities for European farmers
• EU-Mercosur Partnership Agreement: Respecting Europe’s Health and Safety Standards
• EU DG TAXUD – EU-Mercosur ITA – Guidance on Rules of origin
• MERCOSUR: El Mercosur terminó de aprobar el Acuerdo con la UE
• Acuerdo Comercial Interino entre el Mercado Común del Sur (MERCOSUR) y la Unión Europea