EU-Mercosur Trade Deal Advances Amid Legal Review

Ongoing efforts to establish a comprehensive trade and partnership agreement between the European Union and Mercosur have reached new stages, involving multiple approvals and a legal review process.

Political negotiations between the EU and Mercosur, which includes Argentina, Brazil, Paraguay, and Uruguay, began around 1999-2000 and were concluded in December 2024. The Council of the European Union authorised the signature of the EU-Mercosur Partnership Agreement (EMPA) and the Interim Trade Agreement (iTA) in January 2026, followed by a signing ceremony in Paraguay later that month.

The EMPA is structured to include political dialogue, cooperation, and trade, while the iTA focuses on trade and investment provisions that can be applied before the full agreement enters into force. The interim agreement does not require ratification by individual EU member states and will cease once the EMPA becomes active.

The agreements are designed to create a free-trade area covering over 700 million people. In 2024, trade in goods between the EU and Mercosur exceeded €111 billion, with services trade surpassing €42 billion in 2023. The partnership also includes cooperation on sustainable development, environment, digital transformation, human rights, mobility, counter-terrorism, and crisis management.

What the numbers show

• Trade in goods between the EU and Mercosur reached over €111 billion in 2024
• EU exports to Mercosur totaled €55.2 billion in 2024, with imports at €56 billion
• The European Parliament referral vote passed by 334 to 324 votes

Safeguard measures for agricultural products were addressed in late 2025, when the Council and European Parliament reached a provisional agreement on a regulation to implement bilateral safeguards under the EMPA and iTA. The Council had previously approved a regulation in November 2025 to allow for swift action if agricultural imports from Mercosur negatively affect EU producers.

Under the terms of the agreements, the European Commission is able to provisionally apply certain provisions, including bilateral safeguards for sensitive agricultural products, while awaiting full ratification. These safeguards are intended to protect specific sectors during the transition period.

On 21 January 2026, the European Parliament voted to refer the EU-Mercosur trade deal to the Court of Justice of the European Union for a legal opinion, which has delayed the ratification process. The referral passed by a margin of 334 to 324 votes.

The Court of Justice of the EU may take up to two years to issue its opinion on whether the deal aligns with EU policy. During this period, the interim agreement can be provisionally applied, but the full EMPA will not enter into force until the legal review is complete and further ratification steps are taken.

* This article is based on publicly available information at the time of writing.