After more than twenty years of negotiations, the Interim Trade Agreement (ITA) between the European Union and the Mercosur countries — Argentina, Brazil, Paraguay and Uruguay — provisionally entered into force on 1 May 2026. The agreement anticipates the application of the trade provisions of the broader EU-Mercosur Partnership Agreement (EMPA), which is still awaiting full ratification by all EU Member States and the parliaments of the Mercosur countries. Once fully operational, it will be the largest free trade area in the world, covering about 20% of global GDP.
The core of the agreement is the progressive elimination of tariffs on 91% of products exported from the EU to the South American bloc, according to a schedule differentiated by product category. Some sectors benefit from immediate zero tariff, while more sensitive sectors are subject to transition periods of up to 18 years.
Main tariff dismantling timelines for EU exports to Mercosur: • fishery products (fish, molluscs, crustaceans): immediate elimination or significant reduction, current tariff up to 23%; • pharmaceuticals: immediate or progressive reduction up to 5 years, current tariff up to 14%; • clothing and textiles: gradual liberalisation over up to 9 years, current tariff up to 35%; • automotive: progressive reduction over 15-18 years, current tariff up to 35%; • machinery and industrial products: progressive liberalisation over 6-18 years depending on category.
Zero tariff is NOT automatic. To access preferential treatment, goods must qualify as "EU preferential origin" under the rules set out in Annexes 3-A, 3-B and 3-C of the agreement. Two main categories qualify: products wholly obtained in the EU (e.g. meat from EU livestock, agricultural products from EU farming, raw materials extracted on EU territory) and products manufactured from non-EU materials that have undergone "sufficient processing" in the Union as defined by the specific rules in Annex 3-B.