On 17 January 2026, the European Union and the Mercosur countries – Argentina, Brazil, Paraguay and Uruguay – formally signed the EU–Mercosur Partnership Agreement (EMPA) and the Interim Trade Agreement (iTA).
This represents a historic milestone and a significant step toward deeper economic integration between the two regions.
Background and timeline
Following the political agreement reached on 6 December 2024:
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On 3 September 2025, the European Commission proposed decisions for signature and conclusion.
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On 9 January 2026, the Council authorised the signature.
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On 17 January 2026, both agreements were officially signed.
The Interim Trade Agreement (iTA) will apply temporarily until the full EMPA is ratified and enters into force.
Economic significance
The EU is:
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Mercosur’s second-largest trading partner in goods (€57 billion in exports in 2024);
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responsible for a quarter of Mercosur’s services trade (€29 billion in exports in 2023);
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the largest foreign investor in the region (€390 billion investment stock in 2023).
Despite strong economic ties, European exporters and investors continue to face tariff and non-tariff barriers in Mercosur markets.
Key objectives of the agreement
Boost Trade and Investment
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Reduction of tariffs
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Removal of non-tariff barriers
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Improved access for SMEs
Stronger and More Predictable Rules
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Enhanced protection of intellectual property (including geographical indications)
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Clearer food safety and competition rules
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Improved regulatory transparency
Sustainability and Shared Values
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Stronger labour rights protections
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Climate and environmental commitments
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Promotion of responsible business conduct
What does this mean for businesses?
The agreement may result in:
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improved market access in Argentina, Brazil, Paraguay and Uruguay
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reduced customs duties
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greater legal certainty for investors
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new opportunities across agriculture, industry and services
However, businesses should closely monitor the ratification process and any safeguard measures, particularly in sensitive sectors.
Next steps
The agreement must complete the ratification process before it fully enters into force. Until then, the Interim Trade Agreement will apply.
Companies are advised to:
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assess export and investment opportunities
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identify potential tariff savings
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review supply chain strategies
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monitor regulatory developments
Would you like to understand the specific impact for your business? Our specialists are ready to support you.
