Decisions authorising EU-Mercosur Partnership Agreement, iTA adopted

The Mercosur bloc comprises Argentina, Brazil, Paraguay and Uruguay.

Once in force, the two agreements will establish a framework for political dialogue, cooperation and trade relations within a modernised and comprehensive partnership, an official release from the Council said.

The agreements will require the consent of the European Parliament before these can be formally concluded by the Council. Ratification by all EU member states will also be required for the EMPA to enter into force.

These agreements will create new opportunities for businesses on both sides, while ensuring robust safeguards for our most sensitive sectors and a fair, sustainable framework for trade, the release noted.

The EMPA brings together political dialogue, cooperation and comprehensive sectoral engagement under a single framework. It also includes a trade and investment pillar, which will become fully applicable once the agreement is concluded and enters into force.

These provisions will strengthen cooperation in areas like sustainable development, environment and climate action, digital transformation, human rights, mobility and crisis management.

This framework will also facilitate a robust exchange of best practices on issues ranging from governance to technology innovation.

The EMPA also reinforces EU-Mercosur coordination in multilateral fora and provides structured platforms for sectoral dialogue.

Under the decision adopted today, the EU will sign the agreement and apply large parts of the political and cooperation chapters on a provisional basis, pending completion of the ratification procedures.

The Interim Trade Agreement (iTA) reflects the trade and investment liberalisation pillar of the EMPA and will function as a stand-alone agreement until the full EMPA enters into force. Its objective is to deliver the economic benefits of the negotiated trade commitments as early as possible.

The agreement offers tariff reductions and opens access to new markets for a wide range of goods and services. Key sectors like agriculture and chemicals will benefit from improved trade terms.

Additionally, it includes provisions for investment facilitation and the removal of barriers to cross-border trade in services, particularly in digital and financial services. Provisions on government procurement will allow EU companies to access public tendering processes in Mercosur countries.

The iTA falls within the EU’s exclusive competence and therefore does not require ratification by individual EU member states. It will cease to apply once the EMPA enters into force.

In view of the ongoing legislative process on a dedicated Mercosur safeguards regulation, the Council decision introduces specific arrangements ensuring the EU can rapidly address market disturbances arising from imports of sensitive agricultural products.

Until the permanent legislative framework is formally adopted following negotiations between the Council and the European Parliament, the Commission will be empowered to apply bilateral safeguard measures under the iTA for agricultural products and enhanced monitoring requirements will apply to products subject to tariff-rate quotas.

The EU and its Mercosur partners will now proceed with the signature of the agreements.

ALCHEMPro News Desk (DS)