EU-Mercosur Trade Agreement 2026 — Tariffs, Timeline & What It Means for Importers
The trade part of the EU-Mercosur agreement has applied provisionally since 1 May 2026, after talks that began in 1999. It covers Brazil, Argentina, Uruguay and Paraguay. Mercosur is phasing out its duties on EU cars, machinery, pharmaceuticals and textiles, and the EU has opened quotas for South American beef, poultry and ethanol. An EU Court opinion and the European Parliament's consent are still pending.
The Four Mercosur Members
Brazil
~75% of Mercosur GDPArgentina
~20% of Mercosur GDPUruguay
~3% of Mercosur GDPParaguay
~2% of Mercosur GDPKey Tariff Changes Under EU-Mercosur
| Trade flow | Category | Current duty | After FTA | Timeline |
|---|---|---|---|---|
| Mercosur → EU | Beef | Full duty outside the quota | Quota of 99,000 t at 7.5% | Phased in over 5 years |
| Mercosur → EU | Poultry | Full duty outside the quota | Quota of 180,000 t at 0% | Phased in over 5 years |
| Mercosur → EU | Ethanol | Full duty outside the quota | 450,000 t at 0% for chemical use; 200,000 t at one third of the duty | Phased in |
| EU → Mercosur | Cars, electric and hybrid | 35% | 25% | From day one |
| EU → Mercosur | Cars, combustion engine | 35% | 17.5% | First step |
| EU → Mercosur | Car parts | 14–18% | 0% for 90% of EU exports | 10 years |
| EU → Mercosur | Machinery and appliances | 14–20% | 0% for 93% of EU exports | 10 years in most cases |
| EU → Mercosur | Pharmaceuticals | Up to 14% | 0% for 90% of EU exports | 10 years |
| EU → Mercosur | Textiles | 35% | 0% | 8 years |
Figures from the European Commission's factsheets on the agreement. t = tonnes. The tariff schedule decides the rate and the timetable for a given tariff line.
EU-Mercosur — Frequently Asked Questions
What is the EU-Mercosur trade agreement?
A trade agreement between the European Union and the four founding members of Mercosur: Brazil, Argentina, Uruguay and Paraguay. Talks began in 1999. A first political agreement was reached in 2019, the text was renegotiated and concluded in December 2024, and the agreement was signed in January 2026. Together the two sides are a market of more than 700 million people.
Is EU-Mercosur in force?
Partly. The interim trade agreement, the part that covers trade, has applied provisionally since 1 May 2026 between the EU and each Mercosur country that has completed its own ratification. Argentina and Uruguay did so in February 2026. Two steps are still open on the EU side: the European Parliament asked the EU Court of Justice for an opinion on the agreement, which is not expected before 2027, and Parliament's consent is needed to conclude it. If the Court found a problem, the agreement would have to be amended.
Which EU tariffs on South American goods are being reduced?
For the sensitive farm products the EU opened quotas instead of removing the duty: 99,000 tonnes of beef at a 7.5% duty and 180,000 tonnes of poultry duty-free, both phased in over five years, and 450,000 tonnes of ethanol duty-free for chemical use plus 200,000 tonnes at one third of the normal duty. Imports above a quota pay the full duty. Soybeans already entered the EU duty-free before the agreement.
Which Mercosur tariffs on EU goods are being reduced?
Mercosur's duty on electric and hybrid cars fell from 35% to 25% on the first day, and combustion-engine cars are cut to 17.5%. Duties on car parts (14–18%) are removed for 90% of EU exports over ten years, on machinery and appliances (14–20%) for 93% of EU exports over ten years in most cases, on pharmaceuticals (up to 14%) for 90% of EU exports over ten years, and on textiles (35%) over eight years. The first cuts are small, between one and four percentage points.
Does EU-Mercosur affect US importers?
Not directly. It changes duties between the EU and Mercosur only. US duties on goods from Brazil, Argentina, Uruguay and Paraguay are set by US measures, including Section 301 and Section 232, and do not change.
How does EU-Mercosur interact with CBAM?
They are separate. The agreement lowers customs duties. The Carbon Border Adjustment Mechanism is a carbon charge on iron and steel, aluminium, cement, fertilisers, electricity and hydrogen imported into the EU, whatever their origin, and its definitive period began on 1 January 2026. A Mercosur exporter of those goods gets no CBAM relief from the trade agreement.
How do I claim the lower duty?
The goods have to meet the agreement's rules of origin and the exporter has to declare the origin. The European Commission points exporters to the ROSA tool on Access2Markets to check a product, and says Approved Exporter or Registered Exporter (REX) status may be needed to make the declaration. Check first that the Mercosur country you trade with has ratified, because provisional application only covers those that have.
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