After 25 years of negotiations, the EU-Mercosur agreement will come into force from 1 May, albeit provisionally.

The landmark trade deal between the EU and Mercosur countries – Argentina, Brazil, Paraguay and Uruguay – was reached in December 2024. EU countries endorsed it a year later, allowing the agreement to be signed. All four Mercosur countries have also approved it.

However, to be finalised, the agreement still needs the European Parliament’s consent. The process slowed after MEPs referred the deal to the European Court of Justice for a legal review. In the meantime, the Commission decided to apply the agreement on a provisional basis.

Lost on what changes will come into force on Friday? We’ve got you covered.

Can unlimited Brazilian beef and chicken flow into the EU tariff-free?

No. Unlimited quantities of duty-free beef from Brazil, Argentina or other Mercosur countries will not enter the EU at a zero tariff rate – not on day one, and not later.

The deal allows for an additional quota of 99,000 tonnes of beef – split between fresh and frozen – at a reduced tariff rate of 7.5%, phased in over six years and shared among the four countries.

The Commission says this represents around 1.5% of EU beef production. Some experts estimate it could depress prices by up to 2% once fully implemented. The livestock sector, however, remains concerned about competition from high-value cuts from Brazil and Argentina.

For poultry, duty-free imports are capped at 180,000 tonnes, phased in over five years. According to the Commission, this amounts to roughly 1.3% of EU production, adding that rising chicken consumption in Europe should absorb the increase.

For sugar, no additional quotas are granted, except for 10,000 tonnes from Paraguay. An existing quota of 180,000 tonnes of raw cane sugar will be allowed duty-free – around 1.1% of EU sugar production.

Two quotas will be opened for ethanol over five years, for an overall volume of 650,000 tonnes: 450,000 duty-free and 200,000 with a reduced duty.

The agreement includes duty-free quotas for honey (45,000 tonnes in five years) and rice (60,000 tonnes in five years).

What do EU food producers get – and when?

Provisional application also brings immediate – if gradual – gains for EU exporters. Tariff cuts are generally slower than for Mercosur products.

Take olive oil, for example. Tariffs will fall to zero over 15 years, with no volume limits. In Argentina, where duties currently stand at 31.5%, they will drop slightly to 29.4% from day one, until they are fully removed in 2041, said Rafael Pico, director general of Spain’s olive oil association Asoliva.

Pico noted that cheaper olive oil in Mercosur markets could act as “a lever to boost consumption,” pointing to strong growth potential, particularly in Brazil, already one of the world’s largest importers.

In wine, only higher-end sparkling wines (roughly €7 per litre, excluding champagne) will see tariffs scrapped immediately. Cheaper sparkling wines will become duty-free after 12 years. Other wines, including champagne-like beverages, will see tariffs phased out over eight years.

Things will move faster for spirits, with most tariffs eliminated within four years.

Cheese faces a longer runway, with a 30,000-ton duty-free quota entering into force in 10 years.

In the sweets category, tariffs on European chocolate will be phased out over nine years. The transition will be longer – 14 years – for their less-loved cousin, white chocolate.

Is this implementation final?

No. The agreement is only being applied provisionally, pending approval by the European Parliament. Before that, the EU’s top court must issue its opinion.

In January, MEPs referred the deal to the Court of Justice to assess its compatibility with EU law, amid concerns about provisions that allow Mercosur countries to challenge EU legislation affecting market access.

If the Court finds parts of the agreement incompatible with EU treaties, the deal will need to be amended before it can fully enter into force.

What’s the timeline for the Parliament’s case?

The case was formally lodged on March 25. EU countries and institutions have been invited to submit written observations, and an oral hearing may follow.

An advocate general will then issue an opinion, proposing a legal interpretation, before judges deliver a final ruling. The process can take more than a year.

(adm, cm)