The benefits of the EU-Mercosur free trade agreement
Position Paper
2 Sep 2025
Customs and trade facilitation , Trade

The EU has trade and association agreements with most countries in the Latin American region (eg Mexico, Chile, Central America, Andean Community), with the significant exception of the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay). Negotiations between the EU and the Mercosur bloc started back in 1999. More than 20 years later, the EU finally has the opportunity to ratify its most ambitious free trade agreement (FTA), which would also constitute the first trade agreement signed between Mercosur and a major trading partner. With this deal, the EU can secure a first-mover advantage in the region, versus other powers like China. The region can also gain access to substantial untapped growth potential to support its competitiveness. The agreement would give companies in Europe access to a consumer market of 284 million people. However, the EU-Mercosur FTA is much more than just a trade deal. It lays down the foundations for a strategic partnership between the EU and a key fast-growing region. Given the urgency for the EU to boost its competitiveness and diversify its supply chains and partnerships, the EU should ratify this deal as soon as possible. Learn more about the benefits this agreement would bring for businesses operating in Europe.

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