Europe’s wine industry is preparing to enter a decisive new phase following the European Commission’s decision to provisionally apply the EU–Mercosur Interim Trade Agreement. After more than 25 years of negotiations, this long‑awaited development marks a turning point for European wine companies hoping to unlock the full potential of South America’s most dynamic markets. According to the European Committee of Wine Companies (CEEV), the decision injects long‑needed predictability into international trade at a time of geopolitical uncertainty, while significantly improving access to one of the world’s most promising wine‑importing regions.
Why Brazil Represents the Next Major Frontier for EU Wine
For EU producers, Brazil remains the central prize. The country accounted for €205 million in European wine imports in 2024—nearly double its volume a decade earlier—yet substantial tariff and non‑tariff barriers have continued to restrict growth. In 2025 alone, EU producers paid more than €43 million in duties to access Mercosur markets, a cost that CEEV argues has hindered investment and slowed expansion in a region with exceptional potential. The new agreement promises gradual tariff elimination, stronger protection for geographical indications and a simplified trade framework that will reduce red tape for exporters while aligning standards across the bloc.
EU–Mercosur Agreement: Tariff Elimination and GI Protections Transform Market Conditions
The numbers highlight how transformative the agreement could be. EU wine exports to Mercosur reached €238 million in 2024, representing only 1.3% of the EU’s global wine exports—an indication of how much remains untapped. With tariffs of up to 35% on still wines and 18% on imports into Brazil, Paraguay and Uruguay, previous market conditions placed EU wines at a disadvantage compared with key competitors such as Chile and Argentina, which already enjoy lower entry costs. The agreement’s move toward eliminating duties is expected to level the playing field and enhance the competitiveness of European wines across a region of more than 270 million consumers.
Italian Wine Leaders Applaud New Opportunities in South America
Italy’s wine sector has also welcomed the decision. Unione Italiana Vini (UIV) president Lamberto Frescobaldi described the provisional application as a positive signal of a more unified and outward‑looking European trade policy. Frescobaldi noted that, in a moment of heightened tension in Europe’s primary export markets, the opening of new commercial channels is crucial. For Italian producers, Mercosur remains a marginal yet highly receptive market; Brazil is the only major extra‑EU destination to end the past year with imports of Italian wines growing in value, despite the heavy tariff burden that has inflated prices by as much as 27% for still wines and 35% for sparkling wines. The progressive removal of these barriers over the next eight years is expected to markedly improve the competitiveness of Italian wines in South America.
EU–Mercosur Agreement: a Boost for Competitiveness in an Increasingly Fragmented Global Market
Federvini has echoed these sentiments, highlighting that the agreement offers Italian wines, spirits and vinegars an opportunity to diversify export destinations at a time when global trade fragmentation poses increasing challenges. The organisation sees the strengthened protection for geographical indications as particularly important for safeguarding high‑quality Italian products. Federvini president Giacomo Ponti emphasised that the new framework reinforces the competitiveness of Made‑in‑Italy excellence by granting more stable and predictable access to a market of more than 260 million consumers. The decision also ends months of uncertainty, following delays earlier in the year when the European Parliament referred parts of the agreement to the EU Court of Justice, causing fears of a long‑term stalemate. With provisional application now moving forward, the Commission expects the agreement to begin taking effect for Uruguay and Argentina two months after the exchange of notifications, with other Mercosur countries expected to follow.
Simplified Trade Rules to Benefit SMEs Across the EU Wine Sector
Beyond economic benefits, the agreement also strengthens regulatory cooperation by removing non‑tariff trade obstacles that have long complicated entry into Mercosur markets. Divergent oenological practices, duplicative testing requirements and complex certification procedures have historically frustrated exporters. The new rules will significantly streamline these processes, improving efficiency for small and medium‑sized wine companies who make up the majority of Europe’s exporters. For CEEV, this alignment positions European wines to grow sustainably in a region with strong consumer interest in premium imports and significant long‑term demand potential.
Toward a More Diverse and Resilient Export Strategy for Europe’s Wine Industry
The EU wine sector—representing three million full‑time jobs, more than three million hectares of vineyard and €17.4 billion in extra‑EU exports—stands to benefit from a more resilient and diversified trade environment. The provisional application of the EU–Mercosur agreement signals a renewed commitment to open, rules‑based trade at a time when global markets remain unpredictable. European wine companies, from multinational groups to family‑run estates, now look ahead with cautious optimism as they prepare to seize new opportunities in South America.
As negotiations move into their final phase, industry leaders are urging EU institutions and Member States to maintain momentum. The agreement, they argue, carries no downside for European wine producers—only the promise of greater stability, deeper market penetration and a more competitive presence in a region poised for growth.
