Trade agreement between the European Union and Mercosur: it will take effect as of May 1

The commercial relationship between Mercosur and the European Union is moving towards a new phase with the provisional launch of the agreement between the two blocs. The European Commission announced that the understanding will begin to apply as of May 1, 2026, a step that seeks to deepen trade links and open up opportunities for companies and exporters from both regions. The announcement was made by the Commissioner for Trade of the European Union, Maros Sefcovic, who confirmed that the application will be temporary while the institutional process continues for its definitive adoption within the European bloc. The official communication was sent to the Mercosur countries through a “note verbale” addressed to Paraguay, which acts as the legal repository of the regional bloc's treaties. In this way, the European Commission completed the last procedural step necessary for the provisional application, in accordance with the Council Decision of January 9

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In this first phase, the agreement will begin to be implemented between the 27 countries of the European Union and three of the four Mercosur countries. This is because Argentina, Brazil and Uruguay have already ratified the understanding and sent the formal communication to the European bloc. All that remains is for Paraguay, which recently ratified the agreement, to submit its notification so that it is also fully included in this initial phase. The Argentine government highlighted the progress as a foreign and commercial policy achievement. The Secretary of Finance, Pablo Quirno, published the announcement on the social network X with the following text message:

“The European Commission announced today the provisional application of the Mercosur—European Union Agreement as of May 1. Argentina was the first country in the block to complete internal procedures to make it possible. An important step in consolidating our international presence, expanding trade and investment opportunities and creating more predictable conditions for exporting. TMAP”, the official closed his publication with the acronym TMAP (everything goes according to plan) next to the Argentine flag, in a sign of support for the strategy of economic opening promoted by the

current administration.

On the European side, the official statement stressed that the provisional application of the agreement will entail the elimination of tariffs on certain products from day one.

As they explained, EU businesses, consumers and agricultural products will be able to immediately begin to benefit from the agreement, while sectors considered sensitive within the European economy will be protected by strong safeguards.

Along these lines, Commissioner Maros Sefcovic said: “Today we are taking an important step to demonstrate our credibility as a first-rate business partner. The priority now is to turn this EU-Mercosur agreement into concrete results, providing European exporters with the platform they need to seize new opportunities for trade, growth and employment. The provisional application will allow us to begin to fulfill that promise. I am confident to see this agreement unfold its full potential, strengthening our economy and strengthening our position in global trade, while completing all

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However, this stretch of the process remains undefined. The European Parliament decided to challenge the legal basis of the agreement and took the case to the Court of Justice of the European Union (CJEU). This decision prevents MEPs from voting on the agreement until the court issues its final ruling

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In Argentina, while the approval process was already completed, parliamentary initiatives related to the follow-up of the agreement also emerged.

National Senator Gerardo Zamora presented a project for the creation of the Special Commission for Federal Monitoring, Monitoring and Coordination of the Interim Trade Agreement between Mercosur and the European Union within the scope of the Senate of the Nation, within the framework of Law 27,800.

The proposal seeks to provide Congress with a specific tool to politically and technically accompany the implementation of the agreement, especially in relation to its impact on provincial economies, SMEs and regional productive sectors.

The project envisages the creation of a commission composed of 17 senators, with representation from all regions of the country. Its powers include the monitoring of trade subcommittees that are being enabled, the possibility of convening public hearings throughout the country and the power to request periodic reports from the Executive Branch on the progress and effects of the agreement

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In this way, the beginning of the provisional application of the agreement marks a key move on the international economic board and reinforces the Argentine government's strategy of positioning the country within major global commercial circuits. At Casa Rosada, they believe that this step can translate into greater predictability, expansion of exports and new investments in the

coming years.

democratic procedures.”

Despite the start of provisional application, the institutional process within Europe continues in parallel and still requires several approvals for the definitive adoption of the agreement. As reported by Europa Press, the trade pact - together with the association agreement and its political component - will only come into full force when it obtains the approval of both the European Parliament and the national parliaments of the 27 member States