New Route

EU-Mercosur, tariffs agreement in place: what changes for business and exports

Pathway opened for 340 EU food geographical indications of which 57 are Italian

by our correspondent Roberto Da Rin

1 May 2026

REUTERS/Stephane Mahe/File Photo REUTERS

2' min read

Translated by AI

Versione italiana

Key points

A market for 720 million people
Superdazi spat
Potential criticalities
"Agreement creating predictability"

2' min read

Translated by AI

Versione italiana

A 25-year gestation. The trade agreement between Mercosur and the European Union enters into force today, Friday 1 May. It provides for a 90% reduction in import-export tariffs between two blocs, the EU countries and the Latin American countries that are members of the Mercado comun del sur (Brazil, Argentina, Uruguay and Paraguay). An understanding that makes the Latin Americans rejoice and perplexes the Europeans. Were it not for Shakira's concert in Rio de Janeiro on Saturday 2 May, which attracted more than 2.5 million spectators to Copacapabana, the Mercosur-EU agreement would have retained its leadership in television and generalist news.

A market for 720 million people

The agreement, which enters into force in a provisional manner, concerns 720 million people, equal to 20% of global GDP (2025 figures), 340 European food geographical indications, of which 57 are Italian, and is articulated as follows: the gradual elimination of tariffs on 91% of EU exports to Mercosur and on 95% of Mercosur exports to the EU.

Seen from the south, the agreement provides greater access to the EU market, particularly for agricultural products: major exports - including fresh beef, poultry and sugar - will benefit from tariff-free quotas and significant tariff reductions.

Superdazi spat

Seen from the North (from Brussels), the agreement unlocks access to Mercosur markets for industrial and consumer products, through the gradual elimination of the current high tariffs. Currently, for example, Mercosur applies tariffs of 35% on cars, 14-18% on auto parts, 35% on leather clothing and footwear and up to 18% on chemicals and pharmaceuticals.

To mark the event, European Commission President Ursula von der Leyen will participate in a video conference with Mercosur leaders on 1 May, together with European Council President Antonio Costa.

Potential criticalities

However, there remain criticisms, or at least potential centrifugal forces. In addition to the scepticism that still swirls in Brussels, there are fragilities in the South as well. Antonella Mori, a lecturer at Bocconi University and Latin America expert at Ispi, writes that "the bilateral agreement between Argentina and the United States, signed on 5 February 2026 and officially called the "Agreement on Trade and Mutual Investment" (Arti), is considered a potential challenge to Mercosur. Its rules, in fact, require members to negotiate trade agreements as a bloc and not individually. Consequently, the eventual approval of the Arts by the Argentine Congress would set a precedent that could favour fragmentation or greater flexibilisation of Mercosur'.

"Agreement creating predictability"

Graziano Messana, president of the Italian Chamber of Commerce in São Paulo, on the other hand, is very optimistic. 'The agreement is a project of commercial architecture. The great strength of this agreement is that it creates 'predictability'. In such a vulnerable world with constant risks of geopolitical shocks, predictability is a rare and important resource. Any productive investment needs it'.

In the face of resistance, Messana's interpretation is this: 'We are talking about Italia, France and Brazil. For the two European countries it will strengthen the export of wines and cheeses. While Brazil is an exporter of grains, biofuel, soya. The reciprocity of benefits is obvious. There has been resistance, mainly ideological. There is no overlap'.