EU-Mercosur trade agreement enters provisional application

Since 1 May 2026 the trade pillar of the EU-Mercosur agreement has applied provisionally; tariffs on numerous products are removed from day one. One of the largest free trade zones in the world with over 700 million people is created; European industrial exporters (cars, machinery, chemicals) benefit, while farmers fear competition.

Signed on 17 January 2026 in Paraguay following the Council decision of 9 January 2026 (21:5 votes); the EU Parliament's approval for the formal conclusion is still pending, and a CJEU opinion is pending.