EU and Mercosur Advance in Strategic Trade Agreement

EU and Mercosur advance in trade deal with renewed support

After years of negotiations and adjustments, the free trade agreement between the European Union (EU) and Mercosur is moving closer to ratification, driven by renewed political support and bilateral economic opportunities. This progress will create a more open and competitive business environment between the two blocs, benefiting companies and investors alike.

In March 2025, representatives from the European Commission and Mercosur nations reaffirmed their commitment to finalizing the treaty’s last details. The European Union emphasized that the agreement could eliminate tariffs on over 90% of exports, strengthening sectors such as agriculture, technology, and manufacturing.

The agreement's impact is expected to be significant for both regions. South American countries will gain greater access to the European market, benefiting exporters of food products, agricultural inputs, and industrial goods. Meanwhile, European businesses will secure access to strategic raw materials and new investment diversification channels.

The next phase involves final technical discussions and approval by national parliaments. Experts predict the agreement could be officially signed in 2025, marking the largest trade deal ever negotiated by the European Union.

At Equity, we closely monitor the evolution of this treaty, as it presents new opportunities for businesses and investors looking to expand between Europe and South America.

Sources consulted:

Euractiv – euractiv.com

Financial Times – ft.com

G1 News – g1.globo.com