EU-Mercosur trade agreement – Now is the time

After 25 years of negotiations, in December 2024, the European Union and Mercosur (Argentina, Brazil, Paraguay, and Uruguay) countries reached a political agreement for a ground-breaking agreement. In September 2025, the European Commission has transmitted the EU-Mercosur trade agreement to the Council - an important first step towards ratification.

BusinessEurope President Fredrik Persson said: "In an era marked by profound geopolitical uncertainty, Europe must reaffirm its commitment to open, rules-based trade. This agreement is more than just a trade deal - it is a strategic investment in securing Europe's future and a powerful tool for growth.

It will eliminate billions in tariffs by cutting duties on over 91% of EU goods exported to Mercosur countries. Moreover, the agreement will open new opportunities by creating a high-potential market of over 750 million consumers, improving access to crucial raw materials, and promoting fair and rules-based trade. Crucially, it also provides dedicated support for SMEs through improved market access and simplified compliance processes.

We are at a crossroad, and Europe cannot afford to be hesitant. As our global competitors move swiftly to secure influence and market share, the EU must not squander this first-mover advantage. Bringing this agreement home would be a significant step towards a more autonomous, prosperous, and resilient European economy. As the European Council evaluates the finalised text, we urge all Member States to seize this golden opportunity."

For more information, visit our dedicated page "EU-Mercosur trade agreement: Now is the time".