Brussels: The Council of the European Union has adopted two decisions via a written procedure, authorizing the signature of the EU-Mercosur Partnership Agreement (EMPA) and the Interim Trade Agreement (iTA) between the EU and Mercosur countries: Argentina, Brazil, Paraguay, and Uruguay. Michael Damianos, Cyprus' Minister for Energy, Commerce, and Industry, stated that after more than 25 years, today's decision represents a historic step towards strengthening the EU's strategic partnership with Mercosur.
According to Cyprus News Agency, these agreements mark a historic milestone in the relationship between the two regions, following over 25 years of negotiations. The new free trade zone will cover more than 700 million consumers. In 2024, EU-Mercosur trade reached £111 billion, while trade in services exceeded £42 billion in 2023, underscoring the strategic importance of the agreement for both sides.
Michael Damianos emphasized the significance of these agreements in reinforcing political cooperation and economic ties amid global uncertainty. The agreements are set to create new opportunities for businesses while ensuring safeguards for sensitive sectors and establishing a fair framework for trade.
According to the Council of the EU, the EU-Mercosur Partnership Agreement consolidates political dialogue, cooperation, trade, and investment pillars into a single framework. It strengthens collaboration in sustainable development, environment and climate action, digital transformation, and other areas, with parts of the agreement being provisionally applied until full ratification.
The Interim Trade Agreement will act as a standalone agreement with tariff reductions and market access for key sectors. It facilitates investment and cross-border trade, allowing EU companies to participate in public procurement in Mercosur countries. The iTA falls under the EU's exclusive competence, not requiring ratification by individual member states.
Pending the adoption of a dedicated Mercosur safeguards regulation, temporary measures will address market disruptions from imports of sensitive agricultural products. The European Commission will apply bilateral safeguard measures and monitor tariff-rate quotas to protect EU farmers during the transition period.
Following the decisions, the EU and Mercosur will proceed with signing the agreements, with EU representatives traveling to Paraguay for the event. The EMPA will fully enter into force only after ratification by all EU member states and Mercosur countries, while the iTA will apply provisionally until the full agreement is enacted.