New free trade agreements with the EU: What is the status of the Mercosur agreement?

Mercosur is one of the largest trading regions in Latin America. The name stands for ‘Mercado Comùn del Sur’ (Southern Common Market), whose full members are Argentina, Bolivia, Brazil, Parguay and Uruguay.

The Mercosur-EU trade agreement would open up access to one of the largest internal markets for the European Union and make trade in goods originating from the EU to the region significantly more favourable. In December 2024, the substantive negotiations with the EU and four countries in the Mercosur region (Argentina, Brazil, Paraguay and Uruguay) were brought to a provisional conclusion.

With an EU export volume of around 56 billion euros in 2023, the target region is one of the largest EU sales markets.

When will the agreement come into force?

The individual EU countries must ratify the agreement once it has been translated into their national language. The agreement could therefore provisionally enter into force in 2026.

Benefits for EU exporters

If the agreement is confirmed by the EU countries in 2026, the partner countries can expect reduced customs duties for goods originating in the EU. Goods that were previously subject to high import duties in the destination country, such as chemicals, pharmaceuticals, textiles, motor vehicles and communication technology goods, can then be imported at a reduced rate of duty. This means that either more favourable prices can be offered in the target country or the use of trade discounts can be reduced.
Non-tariff trade barriers are also to be dismantled by the agreement, which would, for example, reduce bureaucracy for the traded goods. For example, approval regulations for the automotive sector are to be standardised and simplified regulations for SMEs (small and medium-sized enterprises) are to come into force.
With access to the Mercosur internal market, the export volume can be significantly increased and reliable trade relations can be established.

What requirements must the goods fulfil in order to benefit from customs advantages?

The exported goods must be products of EU origin and comply with the rules of origin agreed in the agreement. With a preference certificate, the goods then gain a customs advantage in the importing country.

Time advantage through automation

Calculating the preferential status of finished goods is not the only complex task; obtaining supplier declarations for EU input material is also time-consuming and costly. With Mercoline's preference management, the entire process can be integrated into your SAP and customised to your production process.
You can obtain supplier declarations based on past deliveries via a web portal and process them further in your SAP.
The preference calculation runs via the PK module based on your parts lists and outputs a preference status result documented in SAP. With the Reguvis (formerly Bundesanzeiger) regulations, which are always up to date, you are informed immediately of changes to the regulations so that new agreements can be quickly set up in your system and you are quickly able to issue preference certificates for these countries.