In a key move to strengthen its global trade network, the European Commission has formally proposed the signing and conclusion of two landmark agreements: the EU-Mercosur Association Agreement (EMPA) and the Modernised EU-Mexico Global Agreement (MGA). These initiatives are part of the EU’s strategy to diversify its trade relations, strengthen supply chains and ensure reliable access to critical raw materials.
EU-Mercosur: the world’s largest free trade bloc
The agreement with the Mercosur countries — Argentina, Brazil, Paraguay and Uruguay — will create the largest free trade area on the planet, covering more than 700 million consumers. It is estimated that this pact could increase EU exports to Mercosur by up to 39%, representing €49 billion per year, and support more than 440,000 jobs in Europe.
Key benefits include:
- Reduction of tariffs on European industrial and agri-food products.
- Protection of sensitive agricultural sectors through quotas, safeguards and full protection of 344 European Geographical Indications (GIs).
EU-Mexico: modernising a strategic relationship
The agreement with Mexico updates a trade framework that has been in place for more than 25 years. With this modernisation, remaining tariffs on key EU exports such as:
- Cheese
- Pork
- Pasta
- Chocolate
- Wine
In addition, protection will be extended to 568 European Geographical Indications and access to Mexican raw materials essential to European industry, such as fluorite, bismuth and antimony, will be improved.
Beyond trade: strategic cooperation
European Commission President Ursula von der Leyen highlighted the importance of these agreements:
‘Our agreements with Mercosur and Mexico are important milestones for the EU’s economic future. We are continuing to diversify our trade, foster new partnerships and create new business opportunities. EU businesses and the EU agri-food sector will immediately reap the benefits of lower tariffs and lower costs, contributing to economic growth and job creation. The EU is already the world’s biggest trading block, and these agreements will cement this position.’
*This article has been automatically translated from its Spanish version.
