The EU-Mercosur agreement has moved from summit headlines to customs practice: since 1 May 2026, its trade part has been provisionally applied. For SMEs exporting from Europe to Brazil, Argentina, Uruguay or Paraguay, and for South American companies selling into Europe, that means tariffs starting to fall, new origin paperwork and a phase-in calendar worth understanding before you quote a price. This guide covers what changes in practice, what remains uncertain and how to prepare.

Every status statement below was checked on 30 September 2026. There are open legal proceedings, so the picture may change and it is worth reviewing regularly.

Where the EU-Mercosur agreement stands (September 2026)

The key milestones, based on official European Commission, European Parliament and Brazilian Congress sources:

  • 6 December 2024: political agreement between the EU and Mercosur (Argentina, Brazil, Paraguay and Uruguay).
  • 9 January 2026: the Council approves signature and provisional application.
  • 17 January 2026: two instruments are signed: the broader EU-Mercosur Partnership Agreement, which requires ratification by every Member State, and the Interim Trade Agreement, which covers trade.
  • 21 January 2026: the European Parliament votes to request an opinion from the Court of Justice of the EU on whether both agreements are compatible with the Treaties. Until the opinion is delivered, Parliament will not vote on consent.
  • 17 March 2026: Brazil’s Congress promulgates Legislative Decree 14/2026, ratifying the interim trade agreement.
  • 1 May 2026: provisional application of the interim trade agreement begins with all four Mercosur countries, and tariff dismantling starts.
  • 29 September 2026: the Vice-President of the Court of Justice dismisses Poland’s application to suspend the Council decision as an interim measure. Poland’s main action remains pending.

Put simply: you can trade with preferential tariffs today, but definitive ratification depends on judicial and parliamentary processes that may take time. Nobody can predict the Court’s opinion with confidence; the sensible approach is to use the current window without betting your entire business model on a single scenario.

What changes on tariffs for EU exporters

According to the European Commission, once fully phased in the agreement will remove duties on 91% of EU exports to Mercosur and 92% of Mercosur exports to the EU. For an SME, the headline figure matters less than the schedule for its own tariff code.

Industrial goods

Examples from the Commission’s exporter factsheet:

  • Cars: the 35% duty falls immediately to 25% for electric and hybrid vehicles and to 17.5% for combustion-engine cars.
  • Car parts: duties dismantled over 10 years for 90% of EU exports.
  • Machinery and appliances: current duties of 14% to 20%, removed over 10 years for 93% of EU exports.
  • Pharmaceuticals: duties of up to 14%, with a 10-year transition to zero for 90% of EU exports.
  • Textiles and clothing: 35% duties, with an 8-year transition to zero.

For businesses in highly regulated sectors, the agreement also includes rules on technical barriers and conformity assessment, and opens some public procurement at federal level in Brazil, Argentina and Uruguay.

Agri-food

Here the pace is slower. Some products are liberalised from day one (high-value sparkling wines, several fruits and fruit preparations, vegetable oils), while wine, spirits, olive oil, pasta, chocolate and beer follow 4, 8, 10 or 15-year schedules depending on the product. The agreement also protects 344 EU geographical indications, and opens initial quotas for products such as cheese and chocolate. If you produce wine or olive oil, see how we take Spanish wine and olive oil to Brazil.

What changes for Mercosur companies exporting to Europe

The reverse flow matters just as much for Brazilian companies. The EU will phase out duties on industrial goods over up to 10 years and liberalises 82% of agricultural tariff lines, with quotas for the rest.

Sensitive products and safeguards

The most sensitive farm products enter under tariff-rate quotas: 99,000 tonnes of beef (at a 7.5% in-quota duty), 180,000 tonnes of poultry and 25,000 tonnes of pigmeat, among others. In February 2026, the European Parliament also approved a safeguard regulation allowing investigations when imports of products such as poultry, beef, eggs, citrus or sugar rise 5% above the three-year average while prices sit 5% below domestic levels.

One important point: the agreement does not lower EU sanitary standards. Since 3 September 2026, the EU has suspended imports of beef, poultry, eggs and honey from Brazil because the country is not on the list of those complying with EU rules on antimicrobials. A preferential tariff is worthless if the product does not meet destination-market rules.

Rules of origin: where preferences are won or lost

Many SMEs learn too late that the preferential rate is not automatic. Goods must meet the rules of origin in chapter 3 of the agreement, and you must be able to prove it:

  • In the EU, the exporter makes a statement on origin identified by its REX (Registered Exporter) number. You will also need an EORI number.
  • In Brazil, the statement on origin is identified by the exporter’s CNPJ.
  • As a transitional measure, for up to five years, the EU will also accept certificates of origin issued under the relevant annex.

If your product includes components from third countries (parts from China, for instance), check whether the processing carried out in Europe or Mercosur is enough to confer origin. The Commission’s free ROSA (Rules of Origin Self-Assessment) tool sits inside Access2Markets, where you can also look up tariffs by product code.

What SMEs should do now

1. Find your tariff code and its schedule

Before discussing margins, pin down your exact HS/NCM code and its phase-out calendar. A 17.5% duty today is not the same as zero in ten years.

2. Review your supply chain through an origin lens

If you import inputs from outside both blocs, check that you still qualify. Sometimes a change of supplier or process makes the difference.

3. Register for REX and prepare the paperwork

It is a straightforward step, but it should be done before the first shipment, not when the container is already at port.

4. Recalculate the landed price, not just the tariff

In Brazil, the import duty is only part of the cost. Domestic taxes, logistics and the ongoing tax reform weigh just as much. If you are still deciding whether the market is right for you, start with our five steps to internationalise a small business.

5. Choose your local counterpart carefully

Lower tariffs open the door, but they do not bring you customers. Distributor, agent or your own entity: each option has different implications for margin and control.

6. Plan with scenarios

With a court opinion pending, build a plan that works on the current schedule and review the agreement’s status every quarter.

Frequently asked questions

Is the EU-Mercosur agreement in force?

Its trade part has been provisionally applied since 1 May 2026 with Argentina, Brazil, Paraguay and Uruguay. Definitive entry into force requires completed ratification, which is on hold pending the Court of Justice opinion requested by the European Parliament.

What does an EU SME need to benefit from the lower tariff?

Its product must meet the agreement’s rules of origin, and it must issue a statement on origin using its REX number. Without valid proof of origin, the standard duty applies.

How much do tariffs fall for exports to Brazil?

It depends on the product. Some duties fall immediately (cars, for example) while others are phased out over 8, 10 or up to 15 years. Check the schedule for your specific tariff code.

Could the agreement be suspended?

As of 30 September 2026, the Court of Justice has refused Poland’s request for interim suspension, but the main action and Parliament’s request for an opinion are still pending. It is a risk to monitor, not a reason to stand still.

Does the agreement make it easier for Brazilian companies to sell in Europe?

Yes, through the gradual removal of duties on most industrial goods and quotas for sensitive agricultural products. EU sanitary and technical rules, however, remain fully in place.

At CB Ventures we support SMEs in both directions. If you are a European company, see how we help you enter Brazil; if you are a Brazilian or Latin American company, see how we help you enter Europe. To review your specific case (tariff code, origin and market-entry structure), get in touch.