Strategic updates on the EU-Mercosur Interim Trade Agreement (iTA): Key benefits for European and South American exporters and importers.
EU–South America Trade: Updates on Tariffs and Customs Procedures 2026
As part of the approval process of the agreement between the EU and Mercosur (Argentina, Brazil, Uruguay and Paraguay), the European Union has confirmed the provisional application of the trade component (Interim Trade Agreement – iTA) starting from May 1st, 2026.
This milestone marks the beginning of a progressive reduction of tariff barriers on over 90% of traded goods, with differentiated timelines of up to 10–15 years for sensitive sectors.
Impact on EU–South America Trade Flows
For European companies, the agreement opens access to a market of over 260 million consumers in Mercosur and could generate tariff savings of up to €4 billion per year.
Key EU sectors expected to benefit include:
- automotive
- industrial machinery
- chemicals and pharmaceuticals
- textiles and consumer goods
Currently subject to high duties (up to 35% in the automotive sector), these industries will benefit from a gradual reduction of tariffs.
On the Mercosur side, the agreement will facilitate access to the EU market for:
- beef and poultry
- sugar
- agricultural products
subject to quotas and safeguard mechanisms.
EU–Mercosur Agreement: Is It Fully in Force?
No. This is a key point to avoid misinterpretation.
Starting from May 1st:
- the agreement will be applied progressively
- it will not yet be fully ratified
As a result:
- measures will enter into force gradually
- the regulatory framework may evolve over time
Expert Logistics Support
As Italian international freight forwarders specialized in the South American corridor, we support companies on both continents in navigating this transition. Our mission is to ensure that every container or air shipment reaches its destination without bureaucratic delays or unforeseen costs.
For a detailed analysis of your shipping plan, the offices of Asian Logistics Agencies are at your complete disposal.
Official Resources & Useful Links:
Agreement Details: European Commission – Mercosur Trade Policy
Tariff Lookup: Access2Markets Portal
Origin Self-Assessment: ROSA Tool
