More than a quarter century after negotiations began, the European Union and Mercosur have delivered something historic, a partnership agreement that brings our two regions closer together and benefits nearly 700 million citizens. It will create one of the largest trade zones in the world, spanning 31 countries and accounting for nearly one-fifth of global GDP. It will strengthen links among like-minded regions at a moment when openness is under threat. This truly matters in a year dominated by rising tariffs and trade restrictions – and it matters not just for our continents, but for the global economy.
Next week, the European Parliament begins its debate on the merits of the agreement, exercising its democratic responsibility to grant final approval. It is a deal that deserves broad support, bringing benefits that will be felt across every EU member state. I look forward to constructive engagement with MEPs to ensure that Europeans benefit fully from the opportunities it offers.
The agreement will eliminate billions of euros in tariffs, open procurement markets, and give companies the predictability they need to plan, expand and invest. The 60,000 European companies already exporting to Mercosur will benefit immediately, saving an estimated €4 billion in export duties each year. Many more, especially small and medium-sized enterprises, will gain easier access to a fast-growing market, unlocking new investment, boosting growth, and supporting high-quality jobs across Europe.
This is an agreement that will drive economic growth on both our continents. We know that because it is a model we have seen work before. Eight years ago, the EU-Canada trade agreement came into force. Since then, bilateral trade has surged by more than 70%, creating high-quality jobs and strengthening Europe’s supply chains of critical materials. The EU-Mercosur agreement is expected to deliver similar gains, with EU exports expected to grow by up to €50 billion. These are not abstract figures; they are future success stories for companies and communities across Europe.
Crucially, our two economies are complementary. Europe needs secure access to the raw materials that underpin our green and digital transitions - lithium, iron ore, nickel and more. Latin America holds some of the world’s largest reserves. Meanwhile Mercosur countries need stable access to investment, technology, and diversified markets. That is exactly what Europe brings.
The result is a genuine win-win. Latin America moves up the value chain, from extraction to processing and refining, generating better jobs and more resilient industries. For Europe it means new opportunities for our companies and greater security of supply for materials critical for the technologies of the future.
This is a deal that delivers not only for industry, but also for Europe’s farmers. EU exports of agricultural products are expected to increase by almost 50%. Mercosur countries will also recognise over 350 European geographical indications. Products from Comté cheese to Prosciutto di Parma, from Cava to Polish vodka will now enjoy strong legal protections across Latin America. It will open significant new opportunities for EU food and drink exports, while ensuring food imported into the EU meets our high health and safety standards. And we have secured strong safeguards for our sensitive agri-food sectors, with mechanisms limiting imports from Mercosur if necessary. This deal shows that trade openness and protection are not in opposition, they are both hardwired into the agreement’s design. So, all sectors of the EU economy – including our farmers – can support it with confidence.
The significance of this pact goes far beyond economics. It is a strategic signal at a moment when geopolitical blocs are hardening, and fragmentation is increasing. The EU and Mercosur are choosing cooperation over competition, partnership over polarisation. The deal highlights that fast-growing economies around the world want strong trade and investment relations with Europe, because we remain a stable and reliable partner.
In a world grappling with economic uncertainty and geopolitical splintering, the EU and Mercosur are building something different – trusted links, based on stability and predictability, with a vast integrated marketplace grounded in the rule of law. It gives us a shared platform to work together on the major global challenges of our age, from tackling climate change and deforestation, to strengthening and reforming global institutions.
This agreement is more than a trade pact. It is a statement of intent from like-minded regions determined to shape a more open, predictable, and cooperative global economy. Since negotiations began in the year 2000, generations of leaders have carried this project forward. Concluding it now, in a period of conflict, fragmentation and rising protectionism, sends a clear message to the world: global trade can still be built on trust and shared interests – and can deliver real gains for our citizens and economies.