Philenews

EU-Mercosur Deal: What It Is and What Changes for Europe's Future

Published January 10, 2026, 14:09
EU-Mercosur Deal: What It Is and What Changes for Europe's Future

The free trade agreement between the EU and Mercosur, reached after 26 years of negotiations, has sparked strong reactions, mainly from farmers, who protested with mobilizations in cities such as Paris and Brussels. The agreement concerns the elimination of tariffs and the opening of markets between the EU and the Mercosur countries (Argentina, Brazil, Paraguay, Uruguay). Mercosur commits to eliminating tariffs on 91% of EU exports, including cars, while the EU will gradually eliminate tariffs on 92% of Mercosur exports. The agreement also includes quotas for agricultural products, such as beef (99,000 tons), poultry, rice, sugar, honey, and soybeans. For certain products, such as wine and spirits, tariffs of 17% and 20-35% are provided, respectively. The agreement is expected to strengthen European exports in certain sectors, such as cars, machinery, wine, and cheese. However, critics are concerned about the unfair competition that will arise for European farmers, as Mercosur does not necessarily adhere to the same environmental standards as the EU. Additionally, there is fear of importing products with residues of prohibited substances. The Mercosur agreement is a significant step in strengthening trade relations between the EU and South America, but it raises questions about the protection of European producers, food safety, and environmental sustainability.