EU–Mercosur (2024 agreement) — free trade agreement in brief

Politically concluded in 2024 after 25 years of negotiation — the world's largest FTA zone covering 780 m people. Ratification pending.

Free trade agreements like this reduce tariff barriers and set common standards for non-tariff topics (standards, public procurement, investment protection). For exporters this translates into lower duties, faster clearance and more predictable compliance — provided the rules of origin are met.

• Phased tariff elimination over up to 15 years
• Access to critical raw materials (lithium, copper, iron ore)
• Preferential tariffs on agri and automotive products

Still under finalisation; REX + statement of origin planned.

Note that rules of origin are defined product-specifically in the agreement's annexes — there is rarely a single percentage threshold. For complex goods with third-country inputs, document an origin calculation.

The agreement pays off primarily for companies with recurring exports or imports between the parties and for products whose "normal" duty is ≥ 3–5 %. For electronic products already enjoying 0 % MFN duties, the benefit lies more in regulatory coherence than tariff elimination.