EU–MERCOSUR Agreement: What It Is About and Why It Matters

The agreement between the European Union (EU) and MERCOSUR is the outcome of more than 25 years of negotiations. After an initial political agreement reached in 2019—and subsequent revisions—the final texts were politically concluded in December 2024. In early 2026, the EU Council formally authorized signing the agreement, which opened the ratification phase.

What is the purpose of the agreement?

The aim is to integrate two major markets and reduce barriers to trade and investment. The agreement links a region of over 700 million people, creating one of the largest bi-regional economic areas in the world.

Legally, it is a mixed agreement, built on two pillars:

• The trade pillar, covering trade in goods and services, market access, and intellectual property.
• The political and cooperation pillar, addressing institutional dialogue, sustainability, and development cooperation.

This structure is critical, as it determines how and when the agreement can be applied.

Economic impact: the essentials

The agreement provides for gradual trade liberalization:

• The EU would eliminate tariffs on around 92% of its imports from MERCOSUR.
• MERCOSUR would eliminate tariffs on approximately 91% of its imports from the EU.

The framework includes transition periods, tariff-rate quotas, and safeguard mechanisms for sensitive products. Agro-industry, food and beverages, manufacturing, and industrial sectors would be directly affected.

Intellectual property: a core component

The intellectual property chapter is one of the agreement’s most significant technical elements. For the first time, it establishes a structured bilateral framework between the EU and MERCOSUR, covering copyright and related rights, trademarks, industrial designs, patents, plant varieties, geographical indications, trade secrets, as well as civil, administrative, and border enforcement measures.

Its purpose is to align standards, strengthen legal certainty and facilitate the cross-border protection and commercial use of intangible assets.

Geographical indications

The agreement provides for mutual protection of geographical indications (GIs):

• MERCOSUR GIs would be protected in the EU.
• EU GIs would be protected in MERCOSUR countries.

The system includes coexistence rules designed to safeguard existing trademarks and prior rights, avoiding automatic displacement.

What happens next?

Several steps need to be completed for the agreement to have legal effects:

1. Formal signing of the treaty.
2. Approval by the European Parliament.
3. Adoption of the EU Council’s decision concluding the agreement.
4. Ratification by the parliaments of all EU Member States.
5. Individual ratification by Argentina, Brazil, Paraguay, and Uruguay.
6. Approval of the treaty by the National Congress of each MERCOSUR state party.
7. Deposit of the instrument of ratification with the MERCOSUR Secretariat.
8. Individual entry into force of the treaty for each MERCOSUR State Party, as and when the relevant ratification procedures are completed and the corresponding instrument is deposited.

Only then can the agreement enter into force. In the most favorable scenario, limited and provisional application could take place, restricted to areas falling within the EU’s exclusive competence. Presently, the European Parliament referred the Agreement to the Court of Justice to assess its compatibility with EU law.

In the case of Argentina, additional domestic legislative adjustments will also be required, including in the field of intellectual property. Through Decree 24/2026, published in the Official Gazette on January 19, 2026, the Executive Branch convened extraordinary sessions of Congress to treat the bill ratifying the agreement. This step formally marks the start of the legislative internalization process in Argentina.

At present, the agreement creates no enforceable rights or obligations. Its significance lies in its potential impact if ratified: structural changes to trade and investment flows, and to the strategic management of intellectual property between the two regions.