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MercosurEU Trade Deal Starts Delivering With First Zero‑Tariff Exports

Early zero‑tariff shipments plus fresh EU funding show quick, concrete gains.

Overview

  • The trade pact, which took effect May 1, enabled Argentina to certify a 22‑ton honey shipment and Uruguay to send 28 tons of processed hake to Lithuania at zero tariffs.
  • The agreement opens most trade between the blocs, lifting duties on 82% of farm goods and all industrial products, with quotas set for sensitive foods and a phased schedule for the rest.
  • Argentina faces new limits on export taxes for sales to Europe, with most crops and meats losing duties within three years and soy capped at 18% to 2031 and 14% to 2036.
  • The EU pledged €1.8 billion for projects in the region, including €400 million in grants and €1.4 billion via development lenders, which EU officials say should draw new investment.
  • Momentum from the deal has spurred talks with Japan and Canada and pushed EFTA ratifications, while Canadian cattle groups warn of tougher competition and EU judges review the pact’s legality.