The Partnership Agreement between Mercosur – Argentina, Brazil, Paraguay and Uruguay – and the European Union represents one of the most significant developments in international trade in recent decades, resulting from a lengthy negotiation process – spanning more than 25 years – aimed at strengthening economic relations between the two blocs.

Our legal firm follows closely the developments of its negotiation, providing all the necessary support to the impacted companies.

The agreement seeks to establish a stable framework for commercial and institutional cooperation, promoting the gradual liberalisation of trade and deeper integration between markets characterised by strong economic complementarities.

This integration goes beyond the elimination of tariff barriers, establishing a comprehensive partnership based on political dialogue, economic cooperation and smoother trade flows.

The treaty provides for the progressive reduction and elimination of tariffs on the majority of traded goods.

From a legal and commercial perspective, the agreement introduces a set of modern rules governing trade in goods and services, including provisions on rules of origin, technical standards and sustainable development.

It also regulates the treatment of sensitive products through tariff-rate quotas and safeguard mechanisms, with the aim of balancing market openness with the protection of vulnerable sectors.

For companies in the countries involved, the agreement offers greater regulatory predictability and preferential access to a combined market of more than 700 million consumers, as well as new opportunities to enter each other’s markets under more favourable conditions for investment and cross-border operations.

At the same time, its implementation will require careful management of regulatory and compliance issues, making qualified legal support essential to assist companies in adapting to the new trade framework.

The Agreement has not yet entered into force. Before it can be implemented, several key steps must be completed, including the final legal review of the text, its official translation into all EU languages, and the subsequent signature and ratification by EU institutions and the national parliaments of the Member States.

This is a complex process, but one of significant strategic importance.

We will continue to monitor developments closely and publish further content on our website analysing the agreement and its legal, economic and commercial implications.

The Law Firm remains available for any further clarification.