State of play

On 21 January 2026, Parliament adopted with 334 votes in favour, 324 against, and 11 abstentions a resolution that pursuant to Article 218(11) TFEU requests the Court of Justice of the EU (CJEU) to provide an opinion on the compatibility of the EU-Mercosur Partnership Agreement (EMPA)/EU-Mercosur interim trade agreement (iTA) with the EU Treaties.

On 17 January 2026, the four founding members of Mercosur - Argentina, Brazil, Paraguay, and Uruguay - and Commission President Ursula von der Leyen and European Council President António Costa signed the EMPA/iTA in Paraguay after the Council had adopted the respective Council decisions on 9 January 2026, including on provisional application. Once ratified and in force, the iTA will expire, after the EMPA has been ratified by all EU Member States.

While the EP's ratification process is now delayed for an unknown period of time, each of the four Mercosur countries has given utmost priority to swift ratification, each of them signalling their eagerness to be the first Mercosur country to have completed the ratification process. 

On 3 September 2025, the Commission proposed Council decisions to sign and conclude the EMPA and the iTA. 

On 6 December 2024, a second agreement in principle was reached between the EU and the four Mercosur countries on the trade pillar. The first agreement in principle of 28 June 2019 sparked significant stakeholder concerns. To address them, the parties engaged in additional negotiations between March 2023 and December 2024. Negotiations on a bi-regional agreement started in 2000 based on 1999 Council negotiating guidelines.

Currently, EU-Mercosur relations are governed by the 1995 Interregional Framework Cooperation Agreement. EU-Mercosur trade ties are conducted under the WTO most-favoured nation principle, with a number of tariff peaks on both sides and non-tariff barriers hampering trade. In 2024, EU-Mercosur trade in goods amounted to €111 billion.

Features of the trade pillar

The additional negotiations have resulted in an annex to the trade and sustainable development (TSD) chapter that contains a commitment to preventing further deforestation and enhancing efforts to stabilize or increase forest cover from 2030 and innovative initiatives for cooperation on sustainable trade. Neither document foresees trade sanctions. The Paris Agreement is an 'essential element' of the deal allowing for its partial or full suspension. Mercosur would open their government procurement market to EU firms, including at regional level with few exceptions for Brazil. In exchange for stronger sustainability commitments by Mercosur and to respond to its concerns about the impact of EU autonomous trade measures, such as the EU deforestation regulation, on its agri-food exports to the EU, a non-violation complaint mechanism was included in the FTA.

If ratified, the FTA would create a free trade zone covering almost 720 million consumers and consolidate the close historic, economic and cultural bi-regional ties. The agreement has a significant geopolitical relevance and economic security dimension in terms of creating resilient supply chains and securing access to critical raw materials. It would also be a sign in support of multilateralism and against power politics in trade. 

The FTA would eliminate customs duties on 91% of EU goods exports to Mercosur. Mercosur would remove gradually high import duties on industrial products from the EU such as cars, car parts, machinery, chemicals, etc. Import duties on EU agri-food exports such as wine, spirits, soft drinks, chocolate etc. would be eliminated progressively. The EU would remove import duties on 92% of Mercosur exports to the EU. For sensitive agricultural goods limited tariff rate quotas (TRQs), in-quota duties and long staging periods as well as bilateral safeguards were incorporated. According to a 2024 Commission cumulative impact assessment, EU agricultural subsectors would be affected to different degrees by the envisaged opening of the EU market for Mercosur agricultural imports. The FTA would protect more than 350 of the EU's geographical indications (GIs) on the Mercosur market.

EP position and EP follow up

In a resolution of 8 October 2025, it welcomed the binding clause in the agreement on ... the Paris Agreement and stressed that the agreement 'will provide an opportunity to ... strengthen ... bi-regional cooperation on addressing common challenges', while helping 'the EU diversify its supply of critical raw materials'.  

In a 2020 resolution, Parliament emphasized that 'the EU-Mercosur agreement cannot be ratified as it stands.’ In a 2023 resolution it stated that the agreement could only be ratified, 'provided that pre-ratification commitments on climate change, deforestation and other concerns are satisfactory’. 

On 3 December 2024, the Committee on International Trade (INTA) held a debate on the trade pillar of the EU-Mercosur Agreement with the Commission. On 9 December 2024, the Delegation for relations with Mercosur (D-MER) held a related exchange with Parlasur Members at the inter-parliamentary meeting (IPM). On 16 January 2025, INTA held an exchange with Commissioner Šefčovič. On 30. January 2025, the Committee on Agriculture and Rural Development (AGRI) held an exchange with Commissioners Hansen and Šefčovič. D-MER discussed the deal on 6 March 2025 and at the D-MER-Parlasur IPM of 18 June 2025. The Committee on Foreign Affairs (AFET) held a public hearing on the deal's geopolitical aspects on 23 June 2025. D-MER held an exchange of views on the trade in services provisions (recording) on 25 September 2025 and on environmental provisions (recording) on 8 December 2025.

References:

• European Parliament, Legislative Observatory, EU/Argentina/Brazil/Paraguay/Uruguay Interim Agreement on Trade, 2025/0184(NLE), and EU/Argentina/Brazil/Paraguay/Uruguay Partnership Agreement, 2025/0192(NLE);
• European Commission, Speech by President von der Leyen on the signature of the EU-Mercosur partnership agreement, press release, 17 January 2026;
• Council of the European Union, EU-Mercosur: Council greenlights signature of the comprehensive partnership and trade agreement, press release 9 January 2026;
• Council of the European Union, Council document 12450/25 of 10 December 2025 containing the text of the EMPA; Council document 12419/25 of 10 December 2025 containing the text of the iTA;
• European Parliament, Request for opinion from the Court of Justice on the compatibility with the Treaties of the proposed EU-Mercosur Partnership Agreement (EMPA) and Interim Trade Agreement (ITA) of 21 January 2026; 
• European Parliament, resolution of 8 October 2025 on the EU political strategy on Latin America (2025/2083(INI)); European Parliament, resolution of 16 February 2023 on an EU strategy to boost industrial competitiveness, trade and quality jobs (2023/2513(RSP); European Parliament, resolution of 7 October 2020 on the implementation of the common commercial policy – annual report 2018 (2019/2197(INI);
• European Parliament, Report of 17 November 2025 on the AGRI delegation mission to Brasilia and Goias, Brazil from 27 to 30 October 2025; Report of 17 September 2025 on the INTA delegation mission to Brasília and São Paulo from 21 to 23 July 2025;
• European Commission, Proposal for a Council Decision on the signing, on behalf of the European Union, and provisional application of the Partnership Agreement between the European Union and its Member States, of the one part, and the Common Market of the South, ..., of the other part, COM(2025)356, 3 September 2025; Proposal for a Council Decision on the conclusion, on behalf of the European Union, of the Partnership between the European Union and its Member States, of the one part, and the Common Market of the South, ..., of the other part, COM(2025)357, 3 September 2025; Proposal for a Council Decision on the signing, on behalf of the European Union, of the Interim Agreement on Trade between the European Union, of the one part, and the Common Market of the South, ..., of the other part, COM(2025)338, 3 September 2025; Proposal for a Council Decision on the conclusion, on behalf of the European Union, of the Interim Agreement on Trade between the European Union, of the one part, and the Common Market of the South, ..., of the other part, COM(2025)339, 3 September 2025.
• European Commission, Sustainability Impact Assessment in Support of the Association Agreement Negotiations between the European Union and Mercosur, Final Report, December 2020, European Commission Position Paper of March 2021.
• European Commission, Civil Society Dialogue meeting on the EU-Mercosur Sustainability Impact Assessment (SIA) – Draft final report of 22 July 2020, meeting report of 27 August 2020.
• European Commission, EU and Mercosur reach agreement on trade, press release, 28 June 2019;
• European Commission, EU and Mercosur reach political agreement on ground-breaking partnership, press release, 6 December 2024; EU-Mercosur: Text of the agreement (in chapters): The upgraded EU-Mercosur agreement – what is new compared to the 2019 agreement; Questions and answers; Factsheet key facts about the agreement; Factsheet on Agriculture; Factsheet on Food Safety; Factsheet on Sustainable Development. Factsheet on Critical Raw Materials;
• Government of Brazil, FACTSHEET - Acordo de Parceria Mercosul-União Europeia, 6 December 2024.
• European Commission, Cumulative economic impact of future trade agreements on EU agriculture, Joint Research Centre, 2016; 2021 update, 2024 update.

Further reading:

• European Parliament, Mercosur: Economic indicators and trade with EU, At a Glance, July 2025.
• European Parliament, International Agreements in Progress Briefing, EU-Mercosur Partnership Agreement: Trade pillar, EPRS , March 2025. 
• European Parliament, EPRS, At a Glance note, Ratification scenarios for the EU-Mercosur agreement, December 2024.
• European Parliament, EPRS, Study, EU trade with Latin America and the Caribbean: Overview and figures, July 2023.
• European Parliament, EPRS, Amazon deforestation and the EU-Mercosur deal, At a Glance, July 2023.
• European Parliament, An update on the economic, sustainability and regulatory effects of the trade part of the EU-Mercosur Partnership Agreement, EXPO, external study, July 2025.
• European Parliament, A comprehensive analysis of the updated trade part of the EU-Mercosur Partnership Agreement, EXPO, external study, July 2025.
• European Parliament, Geopolitical aspects of the EU-Mercosur agreement, EXPO, external study, June 2025.

Author: Gisela Grieger, Members' Research Service, legislative-train@europarl.europa.eu