European Automobile Manufacturers Association

12/18/2025 | Press release | Distributed by Public on 12/18/2025 15:22

EU-Mercosur ratification delay threatens strategic opportunities for European auto industry

EU-Mercosur ratification delay threatens strategic opportunities for European auto industry

18 December 2025

Brussels, 18 December 2025 - The European Automobile Manufacturers' Association (ACEA) regrets today's decision in the European Council to delay the vote on the ratification of the EU-Mercosur Agreement.

At a time of intense global competition, supply chain pressures and geo-political tension, European automotive OEMs look at trade agreements like Mercosur as instrumental in the race for competitiveness and resilience.

The Mercosur deal would contribute to a significant increase in vehicles exports to the region, due to the removal of tariffs of up to 35% and by addressing technical barriers to trade. Additionally, it would provide the automotive industry with an opportunity to secure diversified supply chains for key critical raw materials.

We urge the European Council to move forward with the ratification of the agreement as soon as possible, before the European Parliament can do the same. Agreements like Mercosur are not a mere trade opportunity - they are a strategic necessity for the European automotive industry.

We urge the European Council to move forward with the ratification of the agreement as soon as possible, before the European Parliament can do the same. Agreements like Mercosur are not a mere trade opportunity - they are a strategic necessity for the European automotive industry.

About ACEA

  • The European Automobile Manufacturers' Association (ACEA) represents the 16 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, JLR, Mercedes-Benz, Nissan, Renault Group, Stellantis, Toyota Motor Europe, Volkswagen Group, and Volvo Group.
  • Visit www.acea.auto for more information about ACEA, and follow us on https://www.x.com/ACEA_auto or https://www.linkedin.com/company/ACEA/

Contact:

  • Camille Lamarque, Policy Communications Officer, [email protected], +32 (0) 2 738 73 16

About the EU automobile industry

  • 13.6 million Europeans work in the automotive sector
  • 8.1% of all manufacturing jobs in the EU
  • €414.7 billion in tax revenue for European governments
  • €93.9 billion trade surplus for the European Union
  • Over 8% of EU GDP generated by the auto industry
  • €84.6 billion in R&D spending annually, 34% of EU total
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