Preference management in SAP: Mercosur Free Trade Agreement

The political debate surrounding the Mercosur Agreement intensified significantly at the turn of 2025/2026. While the agreement is considered strategically important for the European export industry from an economic perspective, complex ratification and review processes are still ongoing at the EU level.

On January 17, 2026, the EU and the Mercosur countries formally signed a partnership agreement and an interim trade agreement. These agreements create a legal framework for one of the world's largest free trade areas, but are not yet in force. In addition, in January 2026, the European Parliament decided to ask the European Court of Justice (ECJ) to conduct a legal review of the agreement. Parliamentary approval is therefore still pending and is not expected until after the ECJ ruling at the earliest, which may delay the timetable.

The key message for companies: It will not be possible to take advantage of the Mercosur agreement immediately tomorrow, will likely happen faster than many organizations can adapt their processes.

The agreement is viewed positively, particularly from an industrial perspective, for example with regard to market access, competitiveness, and potential tariff relief.

At the same time, it is foreseeable that there will only be limited lead times between political decisions and operational implementation.

Should the Mercosur free trade agreement come into force, it will have the following effects for companies in Germany and Europe, among others: 

• Easier market access to important sales markets in South America, especially for mechanical engineering, the automotive industry, chemicals, and plant engineering.
• Reduced tariffs and trade barriers, provided that defined rules of origin and preference are complied with.
• Significantly increasing requirements for preference management, verification and compliance 
• Greater complexity in supply chains, particularly with regard to raw materials, origin scenarios and parts lists 

Operational and technical requirements in particular are often underestimated. Experience from existing free trade agreements shows that: 

Despite the political dynamics, there is currently a clear technical classification: 

The Mercosur Agreement is not yet applicable. 
Companies cannot derive any preferential customs advantages from it at present. 

At the same time, practical experience shows that companies that only begin to adapt their processes after an agreement has come into force quickly find themselves under time pressure, cost pressure, and compliance risks.

Especially companies with: 

• complex procurement or manufacturing processes
• international supply chains
• high export and import volumes

benefit from early, structured preparation. 

With the SAP-integrated preference management suite from Mercoline, companies can lay the groundwork today to take advantage of new agreements such as Mercosur quickly, securely, and automatically in the future:

• Centralized management of preference agreements and rules of origin
• Automated preference calculation based on current material and supplier data
• Efficient management of incoming and outgoing supplier declarations
• Audit-proof documentation of all preference and compliance processes

Seamless integration into SAP S/4HANA and ERP processes without additional manual work. This allows new agreements to be activated after they come into force without media breaks, Excel solutions, or time-consuming rework.

Whether Mercosur, existing EU free trade agreements, or future expansions: 
With M. SecureTrade Preference Management