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EU-Mercosur trade deal set for provisional application from May 1

Apr 3, 2026 European Union

The EU-Mercosur interim trade agreement is set to be provisionally applied from the 1st of May, despite objections from certain member states and requests for clarification from the European Parliament

“By sending its ‘note verbale’ to Paraguay, the legal guardian of the Mercosur treaties, the European Commission has taken the final procedural step required for provisional application, in line with the Council Decision of 9 January,” the European Commission said.

The EU-Mercosur interim trade agreement will provisionally apply between the EU and any Mercosur countries that have completed their ratification procedures and notified the EU of this before the end of March. Argentina, Brazil and Uruguay have already done so, and Paraguay has recently ratified the agreement and is expected to send its notification soon.

The move uses a special procedure to bring the deal into force despite a judicial review requested by the European Parliament after a January vote. Backed by supporters such as Germany and Spain seeking faster market access, the Commission opted for provisional application.

The agreement is expected to establish one of the world’s largest free trade zones by eliminating most tariffs, which could boost EU exports by up to 50 billion euros by 2040 and generate annual savings of around 4 billion euros.

The development has been welcomed by footwear industry representatives, who have highlighted both export opportunities and improved access to raw materials.

Industry Representatives

Rosana Perán, President of the European Footwear Confederation (CEC), said that the agreement represents “a significant medium-term opportunity for European footwear”. She noted that “by progressively eliminating tariffs, the agreement will improve price competitiveness in markets that have traditionally been highly protected”.

Perán also noted that improved access to essential raw materials, such as leather, could lower production costs. Furthermore, the agreement could facilitate brand expansion in the region by leveraging retail networks, partnerships, and digital channels. “Overall, this agreement turns longstanding trade barriers into a platform for sustainable growth”, she said, emphasising the importance of ensuring swift implementation.

Luís Onofre, president of the Portuguese Footwear, Components and Leather Goods Manufacturers’ Association (APICCAPS), also welcomed this news. “The potential increase in European exports, with reduced tariffs on industrial and agricultural goods, and the creation of new business and employment opportunities within the EU are clearly positive signs”.

However, he also emphasised the importance of a level playing field. “We have always advocated free, fair and balanced trade practices. When defining the terms of this agreement, it is important that the European Commission ensures our competitors adhere to the same rules, both socially and environmentally”.

In the footwear sector, the benefits for EU manufacturers are mainly confined to leather shoes, for which tariffs will be phased out over a period of up to 15 years. Most other categories, however, will remain excluded. By contrast, Mercosur exporters will see EU tariffs eliminated more quickly and across a broader range of products. A similar pattern applies to components and leather goods.

Nevertheless, “they will enable us to engage with Brazil. Current tariffs of around 35% are gradually being dismantled. This creates an opportunity to access the Brazilian market for the first time”, Onofre emphasised, while cautioning that “the agreement still depends on ratification by national parliaments, which creates uncertainty regarding its implementation”.

Image Credits: gfmag.com

Argentina Brazil CEC European Union Paraguay Uruguay APICCAPS Economy Footwear Trade agreements