EU and Mercosur free-trade deal
The EU-Mercosur trade deal could allow both sides to diversify away from the U.S. and China and create a market of 780 million consumers, but needs approval by a qualified majority of the EU’s 27 member states
MERCOSUR
Remove tariffs on 91% of EU exports over 15 years
EUROPEAN UNION
Remove tariffs on 92% of Mercosur exports over 10 years
Brazil
Paraguay
Uruguay
Argentina
TRADE IN GOODS (2024)
EU to Mercosur
Mercosur to EU
€53.3bn
€57bn
TRADE IN SERVICES
€13.1bn
€28.5bn

Imports from EU
Machinery 28.1%
Chemicals 25%
Transport equipment 12.1%
Food 4%
Services 31%
Goods €53.3bn
Services €28.5bn

Imports from Mercosur
Agricultural products 42.7%
Mineral products 30.5%
Pulp and paper 6.8%
Services 20%
Goods €57bn
Services €13.1 bn

AGRICULTURE
Remove 17% duty on EU wines, 20-35% on spirits. Cheese quota 30,000-tonnes
Beef quota 99,000 tonnes, poultry 180,000 tonnes. Imports from Brazil could grow by $7.1bn by 2040
MANUFACTURING
Removal of duties opening car market of 3m vehicles annually, machinery, chemicals, clothing
RAW MATERIALS
Preferential access e.g. to lithium for car batteries, reducing reliance on China
SERVICES
EU companies to bid for public contracts like local suppliers
INVESTMENT
Increase bilateral investment – EU held stock worth €390bn in 2023
Source: European Commisssion
© GRAPHIC NEWS