The European Council has approved the signature of two new agreements with the Mercosur bloc of South American countries, creating the world's largest free trade zone.
The Council said that the two agreements — the EU-Mercosur Partnership Agreement (EMPA) and an Interim Trade Agreement (iTA) — will deepen trade and political ties between the European Union and Mercosur, which includes Argentina, Brazil, Paraguay and Uruguay.
Once in force, the agreements will establish a formal framework for political dialogue, cooperation in a range of sectors, and increased trade.
The EMPA includes commitments on areas such as sustainable development, digital transformation, human rights, counter-terrorism, and climate action, the European Council said in a statement on Friday.
To become law, both agreements need the consent of the European Parliament. The EMPA will also require ratification from all EU member states.
Wider access to EU and Mercosur markets
The Interim Trade Agreement allows for tariff reductions and greater market access for goods and services between the two regions, including agricultural products, automobiles, pharmaceuticals, and chemicals, according to the European Council.
It also covers the removal of barriers in investment, digital services, and government procurement, allowing EU companies to bid for public contracts in Mercosur countries.
While the EMPA is subject to ratification by EU member states, the iTA falls under the EU's direct authority and does not require individual national approval. The iTA will remain in effect until the EMPA is fully ratified by all parties.
The Council said it has included special measures aimed at quickly addressing potential disruptions to EU agricultural markets resulting from increased imports.
These safeguards will be in place until a permanent framework is formally adopted and will allow the European Commission to apply quick-response measures to protect sectors considered sensitive.
Negotiations over an association agreement between the EU and Mercosur began in 1999 and concluded in December 2024.
The new agreements cover a market of over 700 million consumers. In 2024, trade in goods between the EU and Mercosur exceeded €111 billion, and trade in services came to over €42 billion in 2023.
The agreements will be signed once both the EU and Mercosur complete the necessary procedures. The EMPA will enter into force after it is ratified by all involved parties, and the iTA will cease when the main partnership agreement takes effect.
