The trade treaty, which could come into force shortly, will eliminate most tariffs and give a strong boost to Spanish exports to Latin America.
The Association Agreement between the European Union and Mercosur is entering its final stretch after 25 years of negotiations. The pact, which will integrate the EU commercially with Brazil, Argentina, Uruguay, and Paraguay, is in the ratification phase and could soon begin to be implemented.
Considered the largest trade treaty ever signed by the European Union, the agreement foresees the gradual elimination of most tariffs, the reduction of technical barriers, and expanded access to Mercosur’s public procurement markets. In total, it opens a market of 260 million consumers with high growth potential for European companies.
Spain, one of the main beneficiaries
Spain positions itself as one of the European countries most interested in the agreement’s approval. Its close ties with Latin America and its export-oriented profile make it a privileged partner to take advantage of the treaty’s benefits.
- Tariff cost savings: It is estimated that the agreement will represent annual savings of more than €4 billion for European exports. In Spain’s case, sectors such as automotive, machinery, chemicals, and consumer goods will be the main beneficiaries.
- Boost to the agri-food sector: Products such as wine, olive oil, cheese, cured meats, and canned goods will enjoy better access conditions. In addition, the pact protects 357 Designations of Origin (DO) and Geographical Indications (GI). For Spain, 59 Designations of Origin will be covered, including: Aceite del Bajo Aragón, Baena, Antequera, Priego de Córdoba, Azafrán de La Mancha, Guijuelo, Jamón de Teruel, Jabugo, Idiazábal, Queso Manchego, Sobrasada de Mallorca, Turrón de Alicante, Polvorones de Estepa, Cariñena, Jerez, Jumilla, Ribera del Duero, Somontano, Rías Baixas, Ribeiro, Valdepeñas, Rueda, Cava, and Pacharán Navarro.
- More opportunities for SMEs: Simplification of procedures and access to public tenders in Mercosur will facilitate the internationalization of small and medium-sized enterprises.
According to data from the European Commission, exports to Mercosur could increase by up to 40%, which would translate into the creation of 440,000 new jobs in the EU.
Challenges and sustainability
The agreement also raises some concerns. European agricultural sectors have expressed worries about competition from South American products, while environmental organizations demand guarantees regarding deforestation in the Amazon. To address these criticisms, the text includes a binding sustainability annex requiring Mercosur countries to comply with environmental and labor commitments.
A strategic opportunity
If approved, the Mercosur-EU agreement will mark a milestone in bi-regional trade relations. For Spain, it would represent a historic opportunity to diversify markets, consolidate its presence in Latin America, and strengthen key sectors of its economy in an increasingly competitive global context.
