After more than two decades of negotiations, the trade agreement between Mercosur and the European Union remains without formalization. Although the two blocs announced, in 2019, a political understanding and, in 2024, additional adjustments to the text, the treaty has not yet been signed or ratified, essential steps to become effective.
The agreement involves Brazil, Argentina, Paraguay and Uruguay, on the Mercosur side, and the 27 countries of the European Union. The text provides for the gradual reduction of tariffs and the expansion of access to markets, but can only come into force after it is approved internally by European and South American countries.
Resistance in the European Union
The main obstacle today is in Europe. Countries such as France, Italy and Poland have expressed opposition or asked to postpone ratification, mainly due to concerns linked to agricultural competition, health rules and environmental requirements. France, in particular, has led the pressure against voting on the agreement in its current form.
Continues after advertising
These countries advocate additional guarantees to protect European farmers from the entry of South American products, such as beef, sugar and grains. The European Commission recognizes the political difficulties and has sought to build internal consensus before moving forward with the formal process.
Debate on safeguards
At the same time, the European Parliament is discussing safeguard mechanisms that would allow imports to be restricted if there is a significant impact on local markets. The idea is to create legal instruments that can be activated even after the eventual entry into force of the agreement.
These discussions are part of attempts to reduce resistance from national governments and make it possible for the text to be processed in the Council of the European Union, responsible for the final approval of the treaty in the bloc.
Situation on the Mercosur side
Among the Mercosur countries, the agreement is treated as a diplomatic priority, especially by Brazil. The Brazilian government has publicly defended the conclusion of the process and argues that the text already includes environmental and commercial commitments negotiated over recent years.
Still, even with the support of South American countries, the treaty can only move forward after overcoming the internal impasses in the European Union.
Next steps
So far, there is no set date for the signing of the agreement or for its final vote in Europe. European authorities even signaled the possibility of progress in 2025, but the resistance of some Member States indicates that the issue could be delayed until 2026 or beyond.
Continues after advertising
Meanwhile, the Mercosur-European Union agreement remains in a preliminary stage: negotiated at a technical level, but without legal validity and without concrete effects on trade between the two blocs.
