EU–MERCOSUR AGREEMENT ENTERS INTO FORCE
From 1 May, the EU–Mercosur trade agreement will provisionally enter into force, marking a significant development in the EU’s external trade policy and the creation of one of the world’s largest trading zones. Covering a market of over 700 million people, the agreement is expected to unlock substantial new opportunities for European businesses, including the logistics and freight forwarding sector.
Already, around 30,000 small and medium-sized EU companies export to Mercosur countries, while an estimated 600,000 jobs in the EU depend on trade with the region. The agreement is projected to generate up to €50 billion in additional EU exports over time, driven by the gradual elimination of tariffs, improved market access, and more predictable conditions for investment.
For operators across the supply chain, the reduction of trade barriers is likely to translate into increased trade flows, new routing opportunities, and greater demand for integrated logistics services. At the same time, the agreement introduces a more structured and transparent framework for customs procedures and regulatory cooperation, which could contribute to enhanced efficiency in cross-border operations.
While the provisional application represents an important first step, attention will now turn to implementation and the practical implications for businesses operating across both regions.