EU-Mercosur interim trade deal enters into provisional application

BRUSSELS, (UrduPoint / Pakistan Point News / WAM - 01st May, 2026) The EU-Mercosur Interim Trade Agreement entered into provisional application on 1 May, bringing immediate and tangible benefits for EU businesses, workers, and citizens.

The agreement will gradually eliminate import duties on over 91% of EU goods exported to Mercosur, opening a shared market of over 700 million people. As of today, the deal will remove or drastically reduce tariffs on key EU exports such as cars, pharmaceuticals, spirits, and olive oil, immediately creating new opportunities for EU companies in one of the biggest trade zones in the world.

1 May also marked the beginning of the elimination of non-tariff barriers and technical barriers to trade, as rules on conformity assessment, rules on labelling and respect of international standards start being applied.

This will ensure that EU companies can operate in an easier and faster manner. Public procurement markets will also open, allowing EU firms to bid for government contracts at Federal and state levels on equal terms with local competitors.

Services exporters – in sectors like finance, IT, and transport - will immediately benefit from clearer licensing rules, non-discriminatory procedures and movement of workers. By 2040, these combined benefits are expected to boost the EU's annual exports to the Mercosur region by 39%, reaching €50 billion.