EU-Mercosur FTA: Delayed but Promising? - What Trade Data Says on the EU-Mercosur Trade Agreement

Introduction

The European Union (EU) and the Mercosur bloc, comprising Brazil, Argentina, Paraguay, and Uruguay, have been negotiating a trade agreement for over two decades. After an initial political breakthrough in 2019, hopes for swift ratification were dampened by environmental disputes, domestic resistance within EU member states, and shifting political winds in South America. On December 6, 2024, negotiators reached a renewed political agreement, but ratification is still pending. According to the Europe trade data and the South American trade data, the total value of EU imports from Mercosur accounted for $71.72 billion, while EU exports to Mercosur reached $61.97 billion in 2024. In the first two quarters of 2025, the total EU-Mercosur trade reached over $66 billion. 

The EU-Mercosur Partnership Agreement (EMPA) and the interim Trade Agreement (iTA) are two concurrent legal instruments whose signature and conclusion are subject to proposals for Council decisions that were adopted by the European Commission on September 3, 2025. After the EMPA is fully ratified and goes into effect, the iTA will be removed and replaced. The central question today is: what does the most recent trade data tell us about the potential of the EU-Mercosur Free Trade Agreement (FTA)? Looking at 2024 and early 2025 trade numbers, we can see the scale of the relationship, the structural imbalances, the potential benefits, and the obstacles. The answer seems to be that the deal is delayed but promising, provided both sides manage the politics and the implementation challenges.

The EU-Mercosur Trade Landscape in 2024–25

Trade between the EU and Mercosur is large, dynamic, and strategically important. The numbers reveal both complementarity and asymmetry.

Overall volumes

• In 2024, EU imports from Mercosur reached about €56 billion, up roughly 4 percent compared with 2023.

• EU exports to Mercosur were slightly lower at €55.2 billion, marking a small decline of about 1 percent year-on-year.

• The trade balance has shifted toward Mercosur, with imports slightly exceeding exports.

Growth over the last decade

• Between 2014 and 2024, EU imports from Mercosur increased by more than 50 percent (about €19 billion).

• EU exports to Mercosur grew more slowly, rising by about 25 percent (just over €11 billion).

By country

• Brazil dominates: trade between the EU and Brazil in 2024 was nearly €90 billion, accounting for the majority of EU-Mercosur flows, as per the Brazil export data. 

• Argentina was a distant second with about €16 billion in two-way trade, as per the Argentina trade data. 

• Paraguay and Uruguay together account for less than €6 billion, but their role is significant in specific commodities such as beef and soy.

Composition of trade

• EU imports from Mercosur are overwhelmingly primary products: oil, agricultural goods, minerals, and animal feeds. More than 80 percent of imports are raw or semi-processed commodities.

• EU exports to Mercosur are dominated by manufactured goods: machinery, vehicles, pharmaceuticals, and chemicals make up nearly 87 percent of shipments.

• This asymmetry is the structural backbone of EU-Mercosur trade: Mercosur provides resources and food; the EU provides high-value manufactured goods and technology.

Top 10 EU Imports from Mercosur: What Does the EU Import from Mercosur Trade Bloc?

The European Union maintains a dynamic trade relationship with the Mercosur trade bloc, resulting in significant imports from the region. The EU is a major importer of goods from Mercosur countries, which include Argentina, Brazil, Paraguay, and Uruguay. The top 10 EU imports from Mercosur encompass a diverse range of products, including agricultural goods like soybeans, meat, and coffee, as well as industrial products such as motor vehicles and chemicals. 

This trade flow not only bolsters economic ties between the two regions but also underscores the mutual benefits derived from the exchange of goods. The top 10 goods that the EU imports from Mercosur, as per the EU trade data and shipment data for 2024-25, include:

1. Mineral fuels and oils (HS code 27): $14.64 billion

One of the largest imports from Mercosur to the EU is mineral fuels and oils. This category includes products such as petroleum, natural gas, and other related products. These imports serve as a crucial energy source for the EU, powering industries and households across the region.

2. Prepared animal fodder (HS code 23): $8.30 billion

Prepared animal food is another significant import from Mercosur to the EU. These products are essential for feeding livestock and ensuring the quality of meat and dairy products in the EU. The import of prepared animal food helps to support the agricultural sector in the EU.

3. Coffee, tea, and spices (HS code 09): $5.92 billion

The EU also imports a substantial amount of coffee, tea, and spices from Mercosur countries. These products are popular among European consumers and play a vital role in the food and beverage industry. The import of coffee, tea, and spices enhances the culinary diversity in the EU.

4. Ores, slag, and ash (HS code 26): $5.20 billion

Ores, slag, and ash are essential raw materials for various industries in the EU, including the steel and construction sectors. Imports of these products from Mercosur help to meet the demand for raw materials and support the manufacturing industry in the EU.

5. Pulp of wood (HS code 47): $4.62 billion

Wood pulp is another key import from Mercosur to the EU. This product is used in the production of paper, cardboard, and other essential materials. The import of wood pulp helps to sustain the paper and packaging industries in the EU.

6. Oil seeds and oleaginous fruits (HS code 12): $4.48 billion

Oilseeds and oleaginous fruits are crucial for the production of edible oils and fats in the EU. These products are used in cooking, baking, and food processing. The import of oil seeds and oleaginous fruits enriches the food industry in the EU.

7. Preparations of vegetables and fruits (HS code 20): $2.62 billion

Preparations of vegetables and fruits are popular imports from Mercosur to the EU. These products include preserved fruits, vegetable juices, and other processed goods. The import of preparations of vegetables and fruits contributes to the diversity of food products available in the EU.

8. Meat and edible meat offal (HS code 02): $2.37 billion

Meat and edible meat offal are essential imports for the EU, supporting the demand for high-quality meat products, as per the data on Germany meat imports from Brazil by HS code. These imports play a critical role in the food industry and help to meet the dietary needs of European consumers.

9. Edible fruit and nuts (HS code 08): $1.78 billion

Edible fruit and nuts are popular imports from Mercosur to the EU. These products are used in a variety of culinary applications, from baking to snacking. The import of edible fruit and nuts enhances the gastronomic offerings in the EU.

10. Iron and steel (HS code 72): $1.60 billion

Iron and steel are essential imports for the EU, supporting the construction, automotive, and manufacturing industries, as per the data on Paraguay steel exports to Germany. These products are used in a wide range of applications, from building structures to producing machinery. The import of iron and steel strengthens the industrial base in the EU.

Top 10 EU Exports to Mercosur: What Does the EU Export to Mercosur Trade Bloc?

The EU's top 10 exports to the Mercosur trade bloc encompass a diverse range of products, driving economic exchange between these entities. When it comes to trade with the Mercosur trade bloc, which consists of countries like Argentina, Brazil, Paraguay, and Uruguay, the EU plays a crucial role by exporting a wide range of products. Machinery, pharmaceuticals, chemicals, and vehicles are among the key exports that the EU delivers to Mercosur countries, thereby fostering bilateral trade relations. Additionally, the EU exports agricultural products such as wine, dairy, and processed foods to countries within the Mercosur trade bloc. The top 10 goods that the EU exports to Mercosur in 2024-25 include:

1. Nuclear reactors and machinery (HS code 84): $13.85 billion

Nuclear reactors and machinery make up the largest chunk of EU exports to Mercosur, with a substantial value of $13.85 billion, as per the data on Argentina machinery imports from Italy by HS code. These exports often include items such as nuclear reactors, boilers, machinery, and mechanical appliances, showcasing the EU's technological prowess in this field.

2. Pharmaceutical products (HS code 30): $7.30 billion

Pharmaceutical products come in as the second-largest export category, with a value of $7.30 billion. This category includes medicines, vaccines, and other pharmaceutical preparations, highlighting the EU's expertise in the healthcare and life sciences sector.

3. Vehicles (HS code 87): $5.52 billion

The automotive industry is a cornerstone of EU exports to Mercosur, with vehicles accounting for $5.52 billion in trade value. This category covers passenger cars, trucks, buses, and other motor vehicles, showcasing the EU's excellence in manufacturing and innovation.

4. Electrical machinery and equipment (HS code 85): $4.21 billion

Electrical machinery and equipment are another significant export category for the EU, amounting to $4.21 billion in trade value. This category includes items such as electrical generators, transformers, and electrical signaling equipment, highlighting the EU's leadership in the electrical engineering sector.

5. Optical, medical, and surgical instruments (HS code 90): $3.47 billion

Optical, medical, and surgical instruments are crucial exports for the EU, with a trade value of $3.47 billion. This category encompasses items such as eyeglasses, surgical instruments, and medical devices, reflecting the EU's cutting-edge technology in the healthcare and optics industries.

6. Organic chemicals (HS code 29): $2.73 billion

Organic chemicals represent a vital export category for the EU, amounting to $2.73 billion in trade value. This category includes various organic compounds, chemicals, and pharmaceutical ingredients, showcasing the EU's strength in chemical manufacturing and research.

7. Plastics and articles thereof (HS code 39): $2.49 billion

Plastics and articles thereof are essential exports for the EU, with a trade value of $2.49 billion. This category covers plastic materials, articles, and products, demonstrating the EU's expertise in the plastics industry and its commitment to sustainability.

8. Miscellaneous chemical products (HS code 38): $2.06 billion

Miscellaneous chemical products are a significant export category for the EU, with a trade value of $2.06 billion. This category includes various chemical compounds, mixtures, and preparations, showcasing the EU's diverse chemical manufacturing capabilities.

9. Mineral fuels and oils (HS code 27): $2.06 billion

Mineral fuels and oils are crucial exports for the EU, with a trade value of $2.06 billion. This category includes petroleum oils, natural gas, and other mineral fuels, highlighting the EU's position as a key player in the global energy industry.

10. Aircraft, spacecraft, and parts thereof (HS code 88): $1.98 billion

Aircraft, spacecraft, and parts thereof are essential exports for the EU, amounting to $1.98 billion in trade value. This category covers airplanes, helicopters, spacecraft, and their components, showcasing the EU's advanced aerospace technology and manufacturing capabilities.

EU-Mercosur Trade in the Last 10 Years: Historical Mercosur-EU Trade Data

EU–Mercosur Trade Flows: Top Trade Partners in the Bloc

Key takeaways:

• Brazil–EU trade dominates: nearly $97 billion in 2024, more than five times Argentina’s trade with the EU.

• On the EU side, Germany is the largest partner for Mercosur with around $22 billion in trade, as per the Germany import data. 

• Spain, Italy, France, and the Netherlands each contribute $8–11 billion in trade, showing how Southern and Western European countries have particularly strong commercial ties with Mercosur.

• Uruguay and Paraguay are smaller partners in dollar terms, but critical in agricultural and food exports.

What the EU-Mercosur Trade Agreement Promises

The EU-Mercosur agreement, if ratified, would create the world’s largest trade area by population, covering 780 million people. It would eliminate tariffs on more than 90 percent of goods traded between the two regions over time, though with notable exceptions and transition periods.

For EU exporters

• Tariffs as high as 35 percent on cars, 14 percent on machinery, and 20 percent on chocolates would be reduced or eliminated.

• European wine, spirits, olive oil, and dairy products would gain preferential access to a rapidly expanding middle-class consumer base in South America.

• Around 340 European geographical indications (GIs), including products like Champagne, Roquefort, and Parma ham, would receive legal protection in Mercosur markets.

For Mercosur exporters

• Agricultural and food exports would benefit most. The agreement allows duty-free or preferential quotas for beef (99,000 tonnes with a low 7.5 percent tariff), poultry (180,000 tonnes phased in over five years), rice (60,000 tonnes), and honey, among others.

• These quotas are smaller than existing trade volumes but still represent formalized, guaranteed access to the EU market.

• Raw materials such as soybeans, iron ore, and crude oil already face low or zero tariffs, so the main gains lie in agriculture and processed foods.

Beyond tariffs

• The deal establishes cooperation on sanitary and phytosanitary standards, intellectual property, sustainable development, and government procurement.

• It provides mechanisms for dispute resolution and regulatory dialogue, which could reduce uncertainty and costs for firms.

What Trade Data Reveals About Potential

Looking at the latest 2024-25 trade data through the lens of the agreement shows both the opportunities and limits for the Mercosur-EU trade agreement.

1. Imports from Mercosur are surging faster than EU exports: The EU is increasingly dependent on Mercosur for agricultural and energy inputs. Without improved access to Mercosur markets, EU exporters risk falling behind. The agreement would help restore balance by giving European firms more predictable access and lower tariffs.

2. Agriculture remains the flashpoint
   In 2024, EU imports from Mercosur included:

• €12 billion in petroleum and derivatives

• €7 billion in animal feed

• €5 billion in coffee, cocoa, and spices

• €4.9 billion in metal ores and scrap

• €3.7 billion in oilseeds
  These imports are politically sensitive in the EU, especially beef, poultry, and soy. Farmers worry about cheaper competition undermining European production standards.

3. EU exports are concentrated in high-value goods: Pharmaceuticals (~€6.8 billion), industrial machinery (~€5.4 billion), and cars (~€4.8 billion) dominate. These sectors stand to benefit substantially from tariff reductions in Mercosur, especially as demand for healthcare and transport equipment rises with urbanization and demographic growth.

4. Environmental and sustainability issues loom large: Recent EU regulations, such as the deforestation-free supply chain law, require strict verification of imported agricultural goods. This could restrict Mercosur exports even if tariffs are lowered. The FTA explicitly includes sustainability provisions, but their enforcement will determine how much trade really grows.

Challenges to Ratification and Implementation

Despite the scale and potential, the agreement is not yet ratified. Key challenges remain:

• EU farmer resistance: Many European farmers, particularly in France, Poland, and Ireland, argue that Mercosur beef and poultry threaten their livelihoods. Even though quotas are modest compared to overall EU production, the political symbolism is powerful.

• Environmental opposition: Civil society organizations in Europe link the deal to deforestation in the Amazon and greenhouse gas emissions from livestock. They demand stronger binding commitments from Mercosur governments, especially Brazil.

• Political cycles in Mercosur: Shifts in governments in Argentina and Brazil have alternately accelerated and stalled negotiations. Protectionist sentiment remains strong in certain Mercosur industries that fear EU competition.

• Ratification hurdles: The deal requires approval not only from the European Parliament but also from national parliaments of all EU member states. This creates multiple veto points where opposition can block progress.

• Implementation lags: Even once ratified, tariff reductions will be phased in over several years, and some sectors will remain protected. The “headline” numbers on liberalization may take a decade to materialize fully.

Risks and Imbalances

1. Trade imbalance risk: If Mercosur exports continue to outpace EU exports, European industry could perceive the deal as one-sided. This could feed political opposition.

2. Non-tariff barriers: Sanitary, phytosanitary, and environmental standards may block exports even when tariffs are reduced. For example, if a shipment of beef cannot be certified deforestation-free, it will not enter the EU market.

3. Slow benefits for agriculture: European agricultural exporters such as wine producers or cheese makers may see only gradual gains due to continued Mercosur tariffs and limited consumer purchasing power in parts of South America.

4. Geopolitical shifts: Global trade realignments, such as the rise of China in South America or US-Mercosur initiatives, could dilute the EU’s influence.

Opportunities Ahead

Despite these risks, the deal has several promising dimensions:

• A balanced structure: The complementarity between EU-manufactured exports and Mercosur primary exports gives both sides something to gain.

• Growth potential: Mercosur has a combined GDP of over $3 trillion and a population of 270 million. Rising middle-class demand for healthcare, vehicles, and high-quality food is a natural match for EU exports.

• Environmental leverage: By tying trade access to sustainability standards, the EU can use the FTA as leverage to encourage stronger environmental governance in Mercosur countries.

• Strategic positioning: For the EU, closer ties with Mercosur diversify supply chains, reduce dependence on other suppliers, and strengthen geopolitical ties in Latin America.

What to Watch in 2025

Several developments in 2025 will indicate whether the FTA is moving from promise to reality:

1. Ratification progress: How many EU member states signal approval, and which resist?

2. Quota implementation: Whether initial beef and poultry quotas are actually used, and how EU farmers respond.

3. Agrifood exports from the EU: Do sales of wine, dairy, and olive oil to Mercosur increase once tariffs are reduced?

4. Compliance with sustainability rules: Can Mercosur exporters provide verifiable proof of deforestation-free supply chains?

5. Political climate: Changes in leadership in Mercosur or key EU states could accelerate or derail the process.

Conclusion and Final Verdict 

In conclusion, the EU-Mercosur FTA is a classic case of global trade diplomacy: long in negotiation, politically contentious, but economically significant. The 2024–25 trade data makes one thing clear: trade between the two regions is already vast and continues to grow. Mercosur is becoming more important as a supplier of energy and food to the EU, while the EU remains a critical provider of machinery, pharmaceuticals, and vehicles to South America.

The deal is delayed, and ratification hurdles remain real. But it is also promising, because it addresses structural complementarities, creates opportunities in both directions, and embeds sustainability provisions that could reshape global trade standards. The outcome will not be immediate. Benefits will take years to materialize, and political resistance will not vanish. But if the agreement is ratified and implemented with attention to sustainability and fairness, it could become one of the most significant trade pacts of the 21st century.

We hope that you liked our interactive & insightful blog report on the EU-Mercosur FTA and Trade Data 2025. For more insights into the latest global trade data, or to search live data of European and Latin American countries by product, HS code, or country, visit TradeImeX. Contact us at info@tradeimex.in for customized trade reports and exclusive market insights, as per your business needs.