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.
The benefits of the EU-Mercosur free trade agreement
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Business backs provisional application of the EU–Mercosur Partnership Agreement
Business associations have expressed full support for the European Commission’s decision to provisionally apply the EU–Mercosur Interim Trade Agreement. The move marks a decisive step towards implementation after more than 25 years of negotiations. The economic case is compelling. The European Commission estimates indicate that, once fully implemented, the Agreement could increase EU exports to Mercosur by nearly 40%, generating €48.7 billion in additional annual exports and €77.6 billion in annual EU GDP gains by 2040. At the same time, prolonged delays have carried significant costs for European competitiveness. Swift operationalisation of the Agreement will enhance market access, diversify trade relationships and reinforce the EU’s leadership in sustainable, rules-based trade.
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Increasing certainty around the €150 customs duty de minimis threshold
The Commission’s proposed transitional rules to anticipate the removal of the €150 customs duty threshold risk creating distortions and unnecessary complexity. As discussed at the Trade Contact Group in January 2026, the current approach could undermine simplification efforts and lead to an uneven playing field between businesses involved in low-value distance sales.
Co-legislators should consider targeted changes to address these risks. In particular, the temporary €3 duty and the use of the H7 simplified customs declarations should apply consistently to all distance sales below €150. H7 data requirements for simplified procedures should also remain proportionate and not exceed those of the standard H1 dataset. Finally, changes to the definition of the customs declarant should be avoided where they may create legal uncertainty or increase fraud and liability risks.
Find out more about why a proportionate and legally sound approach is essential for a workable de minimis transition.
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EU-Mercosur vote: a self-inflicted setback to Europe's strategic interests
The European Parliament’s decision to refer the EU-Mercosur free trade agreement (FTA) to the Court of Justice adds a further delay to one of the EU’s most important and long-running trade initiatives.
Commenting on the vote, Malte Lohan, CEO of AmCham EU, said: ‘Today’s vote by the European Parliament to refer the EU-Mercosur agreement to the Court of Justice is a self-inflicted setback for Europe’s economic interests and geopolitical relevance at a moment when the EU can least afford it.
After 25 years of negotiations, this should have been Europe stepping forward as a global trade leader and champion of win-win partnerships. It was an opportunity to strengthen Europe’s global position, diversify supply chains and open new opportunities in a fast-growing market of 284 million people.
Instead, this vote has chosen - yet again - delay.
Europe’s credibility as a trade powerhouse is now on the line. The EU must move decisively to get this agreement back on track.’
The EU-Mercosur FTA will deepen economic ties, reduce barriers to trade and strengthen long-term engagement with a key region. How this process now unfolds will be critical not only for the agreement itself, but also for confidence in the EU’s broader trade agenda.
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