EU–Mercosur in practice: what changes for European companies

What started on 1 May 2026

The EU and the Mercosur countries split their agreement in two. The Interim Trade Agreement covers trade only, falls under the EU’s exclusive competence and has applied provisionally since 1 May 2026. Brazil brought it into force on its side on the same day, by Decree No. 12.953/2026. The wider Partnership Agreement, with political dialogue and cooperation, still needs ratification; when it enters into force the interim agreement expires.

The European Parliament has asked the EU Court of Justice for an opinion on the agreement. That referral does not suspend provisional application, which continues while the Court decides.

Tariffs: falling, but product by product

Mercosur will remove duties on 91% of EU goods exports. Some fell on day one; most follow a schedule, with phase-in periods of up to 10–15 years for sensitive products. The Commission points to immediate relief on cars and pharmaceuticals and a first cut for most agri-food products such as wine, spirits and olive oil, which until now faced high duties across the region.

The practical consequence: there is no single “new rate”. Each product has its own line, identified by its customs code, and its own timetable. The first job is to find yours.

The lower rate is not automatic

Preferential tariffs apply only to goods that meet the agreement’s rules of origin, and only if you can prove it. Proof takes the form of a statement on origin made out by the exporter on the commercial documents. For consignments of originating goods worth more than €6,000, the exporter must be registered in the EU’s REX system. Without valid proof, the Brazilian buyer pays the normal duty.

What stays the same

Customs duty is only part of the landed cost in Brazil. Internal taxes such as IPI and ICMS still apply, and Brazil’s tax reform is phasing in new consumption taxes from 2026. Many food, drink, cosmetic and health products also need registration or labelling approval from Brazilian authorities before they can be sold. The agreement does not remove these steps.

Five questions before the first shipment

1. What is the customs code of our product, and what is its tariff schedule in Brazil?
2. Does the product meet the rules of origin, given where its materials come from?
3. Are we registered in REX, and who signs the statement on origin?
4. Who is the importer of record in Brazil, and what is the full landed cost after internal taxes?
5. Does the product need registration, testing or Portuguese labelling before sale?

Where Gibson fits

Gibson helps answer these questions before money is committed, then finds and checks the people on the Brazilian side: importers, distributors and representatives. The aim is a first shipment that arrives with the right papers and a buyer who expected it.