- The EU-Mercosur interim trade deal will take effect on 1 May, cutting tariffs and creating a vast free trade zone.
- Brussels says it will boost exports, GDP, and jobs, but critics fear harm to European farmers.
- Poland and other countries have raised concerns, with Warsaw planning legal action over risks to agriculture and food security.
On Friday, 1 May, the EU-Mercosur Interim Trade Agreement (ITA) will come into provisional application. While supporters are praising the deal as a significant de-risking achievement by Brussels, opponents want to protect European agriculture, with Poland threatening legal action.
The free trade agreement (FTA) between the two blocs was signed on 17 January 2026, after over 25 years of negotiations. The deal agreed to eliminate tariffs on over 90% of the bilateral exchange of goods between the EU and the South American trade bloc, creating a free trade zone of over 700 million people.
This is expected to increase the EU’s yearly exports by 39%, increasing the organisation’s GDP by €77.6 billion, and supporting up to 600,000 jobs. It is also reflective of Europe’s broader agenda to decrease its dependency on the US.
The ‘interim’ agreement that is soon coming into force covers trade provisions, whereas the broader EU-Mercosur Partnership Agreement (EMPA) – not yet in effect – encompasses wider political cooperation. This separation took place to speed up the implementation of the deal, so that the trade provisions can be applied without full EU ratification of the EMPA.
Mercosur countries – Argentina, Paraguay, Brazil, and Uruguay – completed their ratification processes between January and March 2026, clearing the way for the upcoming implementation.
Earlier this month, Brazil’s Vice President Geraldo Alckmin stated that Brazil’s exports are expected to increase by 13% by 2038, with industrial exports growing by 26%. Brazilian agricultural goods are also set to benefit from the deal.
Agriculture accounts for around a quarter of Brazil’s GDP, marking its position as the world’s leading exporter of beef, soybeans, and orange juice, as well as a coffee giant.
Prior to the signing of the deal, a number of EU countries, namely France, Austria, Ireland, Hungary, and Poland voiced their opposition. Farmers across Europe, particularly in France and Ireland, protested the deal under the impression that it would bring lower-cost agricultural goods into the EU.
On 9 January 2026, the European Parliament requested an opinion from the Court of Justice of the European Union (CJEU), questioning the agreement’s compatibility with EU treaties. Yet, Ursula von der Leyen, President of the European Commission, finalised the deal soon after.
Last week, Poland stated that it will file a complaint to the EU’s top court due to the deal’s potential to harm Polish farmers.
“We believe that food security, consumer safety, and the protection of our own market are at risk,” said Władysław Kosiniak-Kamysz, Deputy Prime Minister of Poland.
