EU–Mercosur Trade Pact Takes Provisional Effect, Slashing Tariffs on Thousands of Exports

Overview

• The agreement, which began applying provisionally on Friday, removes EU import duties on more than 5,000 Mercosur products, with 2,932 Brazilian tariff lines zeroed at once.
• Brazil’s export‑oriented industry and agribusiness gain first as machines, metal products, chemicals and processed foods enter Europe at lower cost, while many EU goods in Mercosur face slower phaseouts of up to 15 years.
• Sensitive goods such as beef, sugar, dairy and ethanol fall under tariff‑rate quotas, and with no deal yet on how Mercosur countries share those quotas, Brazil’s MDIC said access will run by order of arrival.
• Brazil published rules for using quotas and import licenses, and the EU’s broader partnership agreement still needs legal review and full member‑state ratification that could take up to two years.
• Farmer opposition in parts of Europe persisted, with France, Poland, Austria, Ireland and Hungary voting against, while EU officials highlight sustainability clauses tied to the Paris Agreement and openings for Amazon bioeconomy exports.