New Boost for Trade between Europe and South America
Since May 1, 2026, the free trade agreement between the EU and the Mercosur countries Argentina, Brazil, and Uruguay has been provisionally in force. This marks the start of one of the largest trade projects in the world entering a crucial phase. For the logistics sector, this means primarily one thing: increased activity on transport routes across the Atlantic.
The provisional application is already creating tangible effects in the flow of goods. Freight forwarders report rising booking numbers in maritime transport. There is a particularly high demand for container capacities for machinery, vehicles, and chemical products. The major seaports of Hamburg and Bremerhaven are experiencing initial growth in export volumes towards South America.
A key driver is the gradual reduction of tariffs. Up to 90 percent of duties are expected to be eliminated in the long term. This is especially relevant for the automotive industry. Vehicles from Europe were previously subject to a tariff rate of around 35 percent. This will now be gradually reduced to zero. As a result, the competitiveness of European manufacturers will significantly improve.
New opportunities are also emerging for air freight. High-value goods such as pharmaceuticals or spare parts benefit from accelerated customs procedures and clearly defined rules of origin. Airports like Frankfurt or São Paulo are increasingly being used as hubs.
Despite this momentum, some uncertainty remains. The European Court of Justice is currently reviewing the legal basis of the agreement. This review primarily concerns issues related to the distribution of competencies within the EU. However, for practical purposes, this does not result in any immediate restrictions. The provisional application remains in place, and trade continues.
For logistics service providers, flexibility is now essential. New trade flows require adapted networks, optimized transit times, and close coordination with customs authorities. Terms such as proof of preference, rules of origin, and tariff classification numbers are gaining further significance in daily operations.