ΕU - Μercosur relations/ EU relations with Latin America and Caribbean countries

EU - Mercosur Relations

The institutional framework of EU - Mercosur relations is based on two pillars:  political and trade. With regards to the political pillar, the negotiations reached a general approval of the EU - Mercosur Association Agreement, in June 2018, in Montevideo. The Agreement provides for the strengthening of political dialogue, cooperation in areas such as migration, digital economy, research and education, human rights, including the rights of indigenous peoples, corporate and social responsibility, environmental protection, and the management of, as well as the fight against terrorism, money laundering and cyber-crime. EU negotiations with the Mercosur countries on the trade pillar for a Free Trade Agreement (FTA) began in 1999 and, after twenty years and mutual concessions, reached an agreement on 28 June 2019. Nevertheless, it has been agreed that trade relations should be developed along with the international environmental and social standards promoting the sustainable development.

In the above context, following the wildfires in the Amazon in July-August 2019, the issue of sustainable development has come to the forefront, thus dividing Member States into those wishing to speed up the signing of the Agreement and those which set as a prerequisite the compliance by the Mercosur countries with the commitments arising from the Paris Agreement on climate change. In this context, reservations had been expressed by the European Parliament and the Civil Society.

Greece, without underestimating the importance of particularly critical issues of sustainable development, recognizes its special geopolitical importance, as this is the first comprehensive trade agreement concluded by EU with this group of countries. Undoubtedly, the EU will reap all possible benefits through focusing on taking the lead in the region.  Furthermore, as part of the effort to strengthen the resilience of supply chains, this Agreement will significantly contribute to the diversification of EU supply sources. Additionally, particular emphasis is placed on the following areas: a) shipping services, b) canned peaches and dairy products c) the enhanced protection of Geographical Indications (GIs).

After long-standing negotiations, the conclusion of the EU–Mercosur Partnership Agreement was announced in early December 2024. The Agreement was approved by qualified majority by the Council on 9 January of the current year and was signed on 17 January 2026. With the aim of the immediate entry into force of its trade pillar, the Interim Trade Agreement between the two sides was also signed in parallel. It provisionally applies as of 1 May 2026.