The European Union announced that the trade agreement with Mercosur will begin to be applied provisionally starting May 1st. The decision was communicated by the European Commissionwhich highlighted that the measure will facilitate the immediate elimination of several tariffs between both blocks.
The pact, which had been in negotiations and controversy for more than 25 years, involves the Argentina, Brazil, Paraguay and Uruguay by Mercosur. According to the European Commission, the provisional application will be valid for countries that have completed their ratification procedures and have notified it before the end of March.
Panama’s President José Raúl Mulino, from left, Bolivia’s President Rodrigo Paz, European Council President Antonio Costa, European Commission President Ursula von der Leyen, Paraguay’s President Santiago Peña, Argentina’s President Javier Milei, Uruguay’s President Yamandú Orsi and Brazil’s Foreign Minister Mauro Vieira pose for a group photo during a meeting to sign a free trade agreement between the European Union and Mercosur in Asunción, Paraguay, on Saturday, January 17, 2026. (AP Photo/Jorge Sáenz)
What does the provisional application of the EU-Mercosur agreement imply?
The European Commission stressed that the provisional entry into force of the agreement will allow immediately eliminate some tariffswhich will open new opportunities for trade between South America and Europe.
The treaty will facilitate the EU exports more cars, machinery, wines and alcoholic beverages towards Mercosur, while the countries of the South American bloc will be able place beef, poultry, sugar, rice, honey and soy in the European market.
Support and criticism: the debate in Europe
The agreement with Mercosur was backed by the governments of Germany and Spainbut received strong criticism of the agricultural sector in Francewhich fears the arrival of cheaper products with fewer controls than those required in the EU.
In January, the European Parliament He asked that Justice verify the legality of the agreement. While the Commission chose to move forward with the provisional application, pending a decision from the EU Court of Justice, which could take up to a year and a half.
A man holding a sign with the phrase (in French) “Mercosur = assured death” participates in a protest against the trade agreement between the EU and Mercosur, outside the European Parliament in Strasbourg, eastern France, on January 20, 2026. (AP Photo/Pascal Bastien)
Which Mercosur countries are already ready for the agreement with the EU
Until now, the Argentina, Brazil and Uruguay They have already notified the EU that they have completed their internal procedures. Paraguay ratified the agreement recently and is expected to send the notification in the coming days, according to the European Commission.
What it means for Argentina that the EU-Mercosur agreement comes into force
In practical terms, the treaty between both regional blocs aims to progressively eliminate tariffs on bilateral trade: The EU will open its market to about 92% of imports from Mercosur and will grant quotas or preferences for other goods. In exchange, South American countries will reduce taxes on European products, thus consolidating one of the largest free trade zones in the world.
For the Argentinathis means a deep opening of markets towards the EU, which is already one of the most relevant destinations for exports, especially in sectors such as agro-industrial, energy, mining and industrial.
According to official estimates, this increase in access to the European market could translate into a significant growth in Argentine foreign sales in the coming years.
The European Union is one of the main sources of foreign direct investment in the country, and the stability offered by the agreement could translate into a greater influx of capital destined for productive and infrastructure projects.
Due to the agreement with the EU, the Government expects a jump in Argentine exports. (Photo: BCR)
The EU is already a key partner for Argentina. In 2025, the EU was the third destination for local exports, behind China and Brazil. In those twelve months, sales to the European bloc added US$8,486 million, an increase of 2.6% compared to 2024. Meanwhile, imports were US$10,478 million, making the trade balance negative for Argentina at US$1,992 million. This region concentrated 9.7% of Argentine sales abroad and 13.8% of purchases.
With the signed agreement, specific tariff improvements are planned for key products in the Argentine export basket. The beefwhich today pays tariffs of between 20% and 60%, will access new quotas with reduced or zero tariffs; prawns and squid will be taxed at 0%; Hake and honey will also enter without tariffs, as will a wide variety of fruits and citrus fruits, such as lemons, pears, blueberries, cherries and kiwi. In addition, the largest agricultural quotas ever granted by the EU will be granted for products such as beef, corn, rice, poultry and ethanol.
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In terms of macroeconomic impact, official projections indicate that Argentine exports to the European Union could grow up to 76% in the first five years of the agreement and up to 122% within a period of ten years.
Finally, the agreement aims to strengthen the legal predictability and the attractiveness for foreign investments. The European Union is the main source of foreign direct investment in Argentina, with a stock close to US$75 billion, and the treaty establishes a regulatory framework aligned with the best international practices, complementing other investment incentive instruments in force in the country.
