European exporters will begin receiving tariff cuts and other trade benefits from 1 May under the provisional application of the EU’s trade agreement with Mercosur — Argentina, Brazil, Paraguay and Uruguay.
Tariffs will be removed or reduced on some industrial exports including cars and pharmaceuticals, while most agri-food products such as wine, spirits and olive oil will receive an initial tariff cut, the European Commission announced on Thursday.
Goods exporters will see the first tariff reductions take effect from 1 May.
EU firms will also be able to bid for public contracts in Mercosur on the same terms as local companies, with the agreement removing most preferences for domestic firms in government procurement at federal and state level and simplifying tendering procedures.
Service providers will get new market access through licensing rules and non-discriminatory procedures, alongside provisions linked to the movement of workers.
From 1 May, rules designed to reduce so-called non-tariff and technical barriers — such as requirements on conformity assessment and labelling — will also start applying.
Farmers and food producers
The agreement is expected to increase EU agri-food exports to the Mercosur region by 50%, according to the Commission.
From 1 May, the EU will get access to the first part of agreed tariff-rate quota volumes — limits on how much can be imported at a lower tariff rate — and most agri-food products will receive an initial tariff cut.
Mercosur countries will start protecting 344 EU Geographical Indications (GIs) from 1 May, which restricts certain product names to goods made in specific places under recognised methods.
Only products that meet those criteria will be allowed to use protected names — for example, Roquefort can only be used for cheese made in Roquefort, France.
Provisional application follows a European Council decision in January authorising the European Commission to apply the agreement once it is first ratified by a Mercosur country, it said, adding that European Commission President Ursula von der Leyen announced on 27 February that the EU would proceed with provisional application.
