Today, the President of the European Commission, Ursula von der Leyen, and her counterparts from four Mercosur countries (Brazilian President Lula, Argentinian President Milei, Paraguayan President Peña, and Uruguayan President Lacalle Pou) finalized negotiations for a groundbreaking EU-Mercosur partnership agreement.
A win-win agreement
President Ursula von der Leyen stated:
"This is a win-win agreement, which will bring meaningful benefits to consumers and businesses on both sides. We are focused on fairness and mutual benefit. We have listened to the concerns of our farmers and acted on them. This agreement includes robust safeguards to protect your livelihoods.
EU-Mercosur is the biggest agreement ever when it comes to the protection of EU food and drink products. More than 350 EU products are now protected by a geographical indication. In addition, our European health and food standards remain untouchable. Mercosur exporters will have to comply strictly with these standards to access the EU market. This is the reality of an agreement that will save EU companies €4 billion worth of export duties per year."
Strategic Importance
This agreement comes at a critical time for both sides, offering opportunities for major mutual gains through strengthened geopolitical, economic, sustainability, and security cooperation.
- It will boost strategic trade and political ties between like-minded and reliable partners.
- It will support economic growth, boost competitiveness, and strengthen resilience on both sides by opening up trade and investment opportunities and securing sustainable access and processing of raw materials.
- It represents a major milestone in fighting climate change with strong, specific, and measurable commitments to stop deforestation.
- It considers the interests of all Europeans, including the critically important EU farming sector, by increasing EU agri-food exports while protecting sensitive sectors.
- It upholds the EU's standards on animal health and food safety, preventing unsafe products from entering the market.
Economic and Competitive Advantages
This landmark deal will:
- Secure and diversify supply chains.
- Create new opportunities for businesses by removing prohibitive tariffs on EU exports to Mercosur.
- Save EU businesses €4 billion worth of duties annually.
- Ensure trade preferences in strategic net-zero industry sectors such as renewable energy technologies and low-carbon fuels.
- Help small and medium enterprises export more by cutting red tape.
- Secure an efficient, reliable, and sustainable flow of raw materials critical for the global green transition.
Sustainability Commitments|
This deal strengthens EU-Mercosur sustainability commitments by:
- Making the Paris Agreement an essential element of the relationship.
- Setting concrete commitments to halt deforestation.
- Enforcing clear commitments on sustainable development, labor rights, and forest conservation.
- Involving civil society organizations to oversee implementation, including human rights and environmental concerns.
Additionally, €1.8 billion in EU support will facilitate a fair green and digital transition in Mercosur countries as part of the Global Gateway initiative.
For more information:
Olof Gill
European Commission
Tel: +32 2 29 65966
Email: [email protected]
www.ec.europa.eu