The European Union has today (Monday, March 23) notified to the Mercosur countries about the provisional application for the EU-Mercosur interim Trade Agreement (iTA).

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.

The trade agreement will therefore apply provisionally from May 1, 2026 between the EU and all Mercosur countries that complete their ratification procedures and notified the EU 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.

Mercosur deal provisional application

The EU has stated that provisional application ensures the removal of tariffs on certain products as of day one, creating predictable rules for trade and investment.

The commission added that EU businesses, consumers and farmers "can thus start reaping the benefits of the deal immediately", while sensitive sectors of the EU economy are "fully protected by robust" safeguards.

The EU also said today that provisional application will also ensure stronger EU-Mercosur collaboration on pressing global issues such as labour rights and climate change.

"It will create more resilient and reliable supply chains, crucial in particular for the predictable flow of Critical Raw Materials," the cmomission has stated.

Exporters will be able to learn more about the deal via the Access2Markets platform.

EU Trade Commissioner Maros Sefcovic said: "Today is an important step in demonstrating our credibility as a major trading partner.

"Provisional application will allow us to begin delivering on that promise. I look forward to seeing this agreement fulfil its potential, strengthening our economy and reinforcing our position in global trade, while we complete all democratic procedures."

Mercosur deal

The deal is expected to create one of the world's biggest free trade zone, covering a market of over 700 million consumers.

It is estimated the agreement can increase EU annual exports to Mercosur by up to 39% (€49 billion), supporting more than 440,000 jobs across Europe.

Mercosur has a total population of around 270 million people.

It has the sixth largest economy outside the EU with an annual GDP of €2.7 trillion.

The European Commission said that removing high Mercosur tariffs will enable EU exporters to save over €4 billion in customs duties per year.

Mercosur is expected to remove duties on 91% of EU exports over a period of 10 years for most products. 

The deal will also make for easier and simpler customs procedures facilitating exporting of goods, and there will be exclusive preferential access to some critical raw materials and green goods, the bloc said.

The EU will "grant very limited access to its market to imports of agri-food products".

The commission will supplement the agreement with a legal act to cover bilateral safeguards under the deal.

For sensitive products like beef, poultry or sugar in particular, access to the EU market will be permanently limited through gradually implemented quotas and consistent monitoring.