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.
Practical example in the agri-food sector: cheese produced in Italy accesses zero tariff only if milk and main raw materials are of EU origin. Olive oil obtains preferential treatment only if the vegetable products used are wholly obtained in the European Union. In the engineering sector, machinery assembled in the EU with EU components and non-EU materials may benefit from zero tariff if it complies with the processing required by the specific origin rule.
On the operational side, proof of origin is based mainly on the exporter's self-declaration. The ordinary instrument is the "statement on origin" provided for in Annex 3-C, drawn up directly by the exporter on commercial documents (invoices, delivery notes), provided it allows clear identification of the products. For EU operators the declaration is linked to the REX (Registered Exporter) system and does not require a signature, regardless of the value of the consignment, while still requiring the preservation of supporting origin documentation. Mercosur exporters are required to register in their respective national equivalent systems.
The agreement also protects more than 340 European geographical indications, including 57 Italian ones (parmigiano reggiano, prosciutto di Parma, aceto balsamico di Modena and other Made in Italy products), with a prohibition of imitation in Mercosur markets. This is the largest number of geographical indications ever protected by a Union trade agreement.
For shipments from Switzerland, the situation is different. The EU-Mercosur Agreement applies exclusively to EU preferential origin goods: Swiss products remain subject to the MFN rates of the Mercosur Common External Tariff (CET), pending ratification of the separate EFTA-Mercosur Agreement, signed in 2019 and still awaiting ratification by Switzerland, Iceland, Liechtenstein, Norway and the four Mercosur countries. For shipments transiting through Switzerland it is therefore crucial to clearly distinguish between EU origin goods (which can benefit from the new preferential regime, subject to compliance with the direct transport clause) and Swiss or non-EU origin goods (which remain subject to ordinary tariffs).
Franzosini SA, as an Authorised Economic Operator (AEO) in both Switzerland and the European Union, supports Italian and European clients in the correct application of the new agreement: verification of origin rules, REX documentation management, organisation of direct transport and correct customs classification according to the agreement's annexes. For our Swiss clients we continue to monitor the EFTA-Mercosur ratification process and will update this communication as soon as there are developments.
Official sources: European Commission — DG Trade (legal texts published on trade.ec.europa.eu); Official Journal of the European Union (Council decision on provisional application of the ITA); EFTA Secretariat (status of ratification of the EFTA-Mercosur Agreement). The tariff rates and dismantling timelines cited are taken from the official annexes of the agreement.