EU–MERCOSUR: COUNCIL CLEARS THE WAY FOR SIGNATURE
On 9 January 2026, the Council of the European Union adopted the decisions authorising the signature of the EU–Mercosur Partnership Agreement (EMPA) and the Interim Trade Agreement (iTA). This marks a major milestone in the EU’s long-standing relationship with Mercosur partners – Argentina, Brazil, Paraguay and Uruguay – and brings to a close negotiations that began back in 1999.
The EMPA establishes a broad framework covering political dialogue, cooperation and trade. While full entry into force will require ratification by all EU Member States and consent of the European Parliament, large parts of the political and cooperation chapters will apply provisionally once signed. The agreement strengthens cooperation on issues such as sustainable development, climate action, digital transformation, mobility and security, while providing structured platforms for sectoral dialogue and closer coordination in multilateral fora.
To ensure that economic benefits are delivered as early as possible, the trade and investment pillar will be implemented through a stand-alone Interim Trade Agreement. The iTA, which falls under the EU’s exclusive competence, provides tariff reductions, improved market access for goods and services, investment facilitation and access to public procurement in Mercosur countries. It will apply until the full partnership agreement enters into force.
Addressing sensitivities, the Council decision includes temporary bilateral safeguard arrangements for agricultural products, allowing the Commission to act rapidly in case of market disturbances. These measures will apply until a dedicated EU–Mercosur safeguards regulation is formally adopted.
Welcoming the decision, Ursula von der Leyen underlined that the agreement sends a strong signal on Europe’s competitiveness, trade diversification and commitment to reliable partnerships. The deal will create a market of around 700 million consumers, support EU exporters – including SMEs – through lower tariffs and simpler customs procedures, and strengthen access to key raw materials, while maintaining safeguards for sensitive sectors.
The next step is the formal signature of the agreements, followed by the European Parliament’s consent and national ratification procedures for the EMPA.
Source: Council of the EU