The EU-Mercosur Interim Trade Agreement will be provisionally applied from May 1, according to an announcement by the European Commission.
The agreement is expected to bring about immediate tariff reductions and open up new markets for European products, boosting the export potential of EU businesses, farmers and small and medium-sized companies.
The President of the Commission, Ursula von der Leyen, said that the agreement is the result of long negotiations and creates new trade opportunities for the Union from day one.
According to the Commission, a gradual elimination of import duties is planned for more than 91% of European exports to Mercosur, a market that exceeds 700 million consumers.
From the first day of implementation, tariffs on products such as cars, pharmaceuticals, wine, spirits and olive oil are reduced or abolished.
The agreement also provides for an increase of up to 50% in EU agri-food exports to the region, as well as legal protection for 344 European geographical indications.
At the same time, it includes quotas and safeguard mechanisms for sensitive EU agricultural sectors, as well as enhanced controls.
Arrangements to reduce technical and non-tariff barriers, such as compliance rules, product labelling and harmonisation with international standards, are also in place from 1 May.
The agreement opens up public procurement markets to Mercosur and facilitates access for European services in areas such as finance, IT and transport.
According to the Commission, by 2040 EU exports to Mercosur are expected to increase by 39%, reaching €50 billion per year.
