EU-Mercosur Trade Agreement de facto Enters into Force: A Milestone Reached, Finally
It’s a major milestone, not only for the EU and Mercosur: The EU-Mercosur Interim Trade Agreement (the ITA) enters into provisional application today, 1 May 2026, for the EU and the four Mercosur countries that have ratified it.
It has been a long way. Negotiations for the Association Agreement between the EU and Mercosur began 26 years ago, in 2000, and concluded on 29 June 2019 for the trade components. The process culminated in a political agreement on a trade deal in December 2024 between the EU and the four founding Mercosur countries, Argentina, Brazil, Paraguay, and Uruguay. The EU formally endorsed the trade agreement on 9 January 2026, and as the ITA falls under exclusive EU competence, it does not require separate approvals by EU Member States. With Mercosur countries’ ratifications in place and a decision by the EU to apply the agreement provisionally (pending the EU Parliament’s consent, delayed due to a legal review), the ITA can now be applied – a big step for traders, service providers, manufacturers, farmers and other businesses within the giant new trading space.
Previously, trade relations between the two regions lacked any preferential framework. With the ITA, this changes decisively, in many more ways than just by lowering tariffs on goods (although that is pretty big already).
Services, Sustainability and more
In the services sector, the ITA promotes mutual recognition, cooperation, and removes barriers to cross-border supply of financial, telecommunications, and digital services, and facilitates establishment. This is particularly significant, as business services, transport, telecommunications, and travel are the most exchanged services between both sides, while financial, insurance, and telecommunications services still face many barriers in Mercosur. The agreement also liberalizes maritime services, especially for intra-Mercosur international maritime trade, a key EU priority.
A strong accent has been put on the development of sustainability and the green economy, which are particularly emphasized in the Chapters on Trade in Goods and Trade and Sustainable Development. That said, the emphasis is arguably less developed in the services and establishment chapter and the related schedules of commitments, with little market opening for environmental services. Argentina stands out, though, as the country has opened its market for environmental protection services in Modes 1, 2 and 3, and the EU did in Mode 3, potentially generating positive effects in the future and serving as an example for the other parties.
Time will tell how trade figures evolve in the coming years, with the strong hope that service flows between the two regions will grow and that the momentum behind the green economy will produce the intended effects. In any case, reaching such an ambitious trade agreement is already a success and a strong commitment to collaboration in pursuit of trade conditions that are more favourable for businesses, populations and the planet.
Want to know more about services and investment regulations in the EU’s trade partners? Check out the new tool on “Access2Markets”
The requirements applicable to EU suppliers willing to export their services or establish themselves abroad go beyond those reflected in trade agreements. Understanding the domestic regulations of the country of establishment is key to their commercial success. The European Commission has developed a pioneering database called “My Trade Assistant for services and investment,” which we warmly invite you to consult to know more about both regulatory requirements and market access conditions for your sector of activity in third countries, among them Brazil.