The Commission and Mercosur are still in the process of finalising the text of the Agreement. Therefore, there is presently no decision regarding the legal architecture of the agreement.

The Trade and Sustainable Development (TSD) Chapter contain s robust climate protection commitments, including an obligation of each Party to effectively implement the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. This means that a withdrawal from the Agreement or a breach of its commitments would also be in breach of the EU-Mercosur agreement, and thus subject to its dedicated dispute settlement. The monitoring and enforcement of all TSD chapters have been further strengthened, including with the set-up of the Chief Trade Enforcement Officer and the Single Entry Point for complaints. In addition, in line with the EU-Mercosur joint Statement of 14 December 2020, Commission services and the European External Action Service will work with Mercosur to develop an additional instrument on sustainability aspects of the agreement.

The Commission will present legislative proposals on the placing on the EU market of products derived from deforestation and on due diligence requirements to promote the respect for human rights and the environment, which are aimed at addressing in a horizontal fashion some of the sustainability concerns in the context of the EU-Mercosur Agreement. The approval process for this Agreement and the adoption procedure for these legislative proposals are two separate legal processes, with their co-respective timings.