2026's EU Trade Deals: What Mercosur, India and Australia Change, and When

Three agreements, three different stages. Only one of them changes an invoice today.

EU–Mercosur: in effect, provisionally

The trade part of the EU's agreement with Brazil, Argentina, Uruguay and Paraguay has applied provisionally since 1 May 2026, between the EU and each Mercosur country that has completed ratification. Talks began in 1999, and the agreement was signed in January 2026.

• Mercosur's 35% duty on European electric and hybrid cars fell to 25% on the first day, and combustion-engine cars are cut to 17.5%.
• Duties on car parts (14–18%), machinery (14–20%) and pharmaceuticals (up to 14%) are removed for most EU exports over ten years, and on textiles (35%) over eight.
• The EU opened quotas for South American beef (99,000 tonnes at a 7.5% duty), poultry (180,000 tonnes duty-free) and ethanol.

Two steps remain on the EU side. The European Parliament asked the EU Court of Justice for an opinion, which is not expected before 2027, and Parliament's consent is needed to conclude the agreement.

EU–India: concluded, not signed

The EU and India concluded their agreement on 27 January 2026. In September the European Commission asked the Council to approve its signature, and both sides aim to sign around the end of 2026 and apply it in early 2027.

• India's 110% duty on European cars falls to 10% within a quota of 250,000 cars a year.
• Wine falls from 150% to 75% at entry into force and later to between 20% and 30%. Spirits fall to 40% and beer to 50%.
• EU duties on Indian textiles and apparel (up to 12%), leather and footwear (up to 17%) and gems and jewellery go to zero when the agreement applies.
• Beef, chicken, rice and sugar are left out.

EU–Australia: concluded, expected in force late 2027

Negotiations concluded on 24 March 2026, after talks that began in 2018. The agreement is not yet signed, and Australia expects it to enter into force in late 2027.

• The EU removes duties on Australian wine, nuts, fruit and vegetables, honey, olive oil, most dairy, wheat, barley and seafood from the first day.
• Beef gets quotas totalling 30,600 tonnes, phased in over ten years.
• Australia removes more than 99% of its tariffs on EU exports, including those on machinery, cars and chemicals from the first day.

What it means for sourcing

A concluded agreement changes nothing at the border until it applies, and the lower rate depends on meeting its rules of origin. Plan with the entry-into-force dates, and keep both the preferential and the regular rate in your numbers until those dates are certain.

Zentria Flow keeps a guide to each agreement, starting with EU–Mercosur: zentriaflow.com/eu-mercosur-free-trade-agreement.