The EU is opening the doors to the Mercosur and Mexico agreements. The European Commission announced this by presenting its proposals to the Council for the signing of the relevant agreements. The EU-Mercosur Partnership Agreement (EMPA) and the EU-Mexico Modernized Comprehensive Partnership Agreement (MGA) are a key part of the European Union’s strategy to diversify its trade relations, particularly following the implementation of US tariffs. The new partnerships will create export opportunities worth billions of euros, starting with the wine industry, which welcomes the prospect of long-sought agreements. “The opening to Mercosur is an important signal in favor of free trade, especially at a time when it seemed to have disappeared,” emphasized Lamberto Frescobaldi, President of the Italian Wine Union (UIV). “These are the trade agreements we like.” Regarding the agreement aimed at free trade between European Union member states and Argentina, Brazil, Uruguay, and Paraguay, and the agreement with Mexico (already under a 0% tariff regime) with a wine agreement aimed at simplifying non-tariff rules and providing greater protection for Geographical Indications, one of the main players in the Italian wine industry, Alessandro Mutinelli, CEO of IWB, confirms: “For several years, our group has invested in the distribution of its products in the Mercosur area, with interesting growth figures: approximately +18% in the first half of 2025. In absolute terms, this area is still marginal for Italian wine, however, the new agreements will lead to greater competitiveness of our products compared to the past, and this bodes well, because local consumers have a natural connection with Europe, the area of origin of many of their ancestors, and a native propensity for wine consumption.” Ursula von der Leyen, President of the European Commission, said: “EU businesses and the European Union agri-food sector will immediately benefit from lower tariffs and lower costs, contributing to economic growth and job creation.”
Mercosur: An Unprecedented Opportunity for the EU
The EU-Mercosur Partnership Agreement, signed with Argentina, Brazil, Paraguay, and Uruguay, will create the world’s largest free trade area, covering a market of over 700 million consumers. European Union companies will enjoy first-mover advantage, benefiting from lower tariffs in a region where most other countries face high tariffs and other trade barriers.
The agreement is estimated to increase EU annual exports to Mercosur by up to 39%, equivalent to €49 billion, supporting over 440,000 jobs across Europe. If the agreement reduces Mercosur’s often prohibitive tariffs on EU exports, starting with key industrial products such as automobiles (currently 35%), machinery (14-20%), and pharmaceuticals (up to 14%), it will open up new opportunities, especially for agriculture.
EU agri-food exports to Mercosur are expected to grow by nearly 50%, as the agreement reduces high tariffs on key products, particularly wine and spirits (up to 35%), chocolate (20%), and olive oil (10%). The agreement will also put an end to unfair competition from Mercosur products that imitate authentic EU products by protecting 344 Community Geographical Indications.
The EU-Mercosur Partnership Agreement provides comprehensive protection for all EU concerns in the agricultural sector. First, it limits preferential agri-food imports from Mercosur to a fraction of EU production: for example, 1.5% for beef and 1.3% for poultry. Second, it establishes robust safeguards that protect sensitive European products from any harmful increase in imports from Mercosur. To this end, the Commission proposes supplementing the agreement with a legal act that operationalizes the bilateral safeguards chapter of the EMPA. Adopted by the European Parliament and the Council, it will protect the EU’s crucial and most sensitive agricultural sectors, recognizing the concerns of European farmers.
What was approved today represents a significant step for the 27 EU member states, whose ratification will require approval by the EU Council and the European Parliament, which the wine industry, represented by UIV, hopes will occur quickly.
“For the wine world,” Frescobaldi emphasizes, “the partnership with a Latin American population of 270 million certainly represents a business opportunity. Today, with US tariffs, the key is to diversify a commercial spectrum still too concentrated in a few outlet markets, primarily the US.”
According to the UIV Observatory, Brazil, the leading buyer of the four South American countries in the EU-Mercosur partnership agreement, closed the first half of the year with a 5.5% growth in the value of Italian wine orders, to €18.5 million, with still and sparkling wines up 8.5%. European wine imports from Brazil are expected to reach €190 million in 2024, a 41% increase over the last five years. In a market dominated, partly due to tariffs, by Chilean producers (€186 million) and Argentine wines (€90 million), the leading supplier is Portugal (€75 million), followed by France (€50 million) and Italy with €40 million. These figures are expected to grow significantly with the potential elimination of a tariff that currently stands at 27%.
The EU-Mexico Modernized Comprehensive Agreement: New Frontiers in the Mexican Market
The new EU-Mexico Modernized Comprehensive Agreement will further support economic growth and boost the competitiveness of both parties. Mexico is one of the EU’s longest-standing trading partners and the second-largest in Latin America, with the original agreement dating back to 2000. The EU exports goods and services to Mexico annually worth over €70 billion, supporting over 630,000 jobs.
The Central American country is primarily a net importer of food products; therefore, the agreement will significantly benefit EU agricultural exports. The updated agreement will eliminate the remaining prohibitive tariffs on agri-food exports such as cheese, poultry, pork, pasta, apples, jams, chocolate, and wine. The elimination of these trade barriers, which currently rise to 100% on some EU exports, will make EU agricultural products much more competitive in Mexico. Furthermore, simpler procedures will make it quicker and cheaper for agri-food exporters to sell their products on the Mexican market. The agreement also extends protection from imitation to 568 iconic European food and drink products with Geographical Indications.
Federvini: “Opening markets, yes, but with effective protection for our supply chains.”
With the European Commission’s approval of the EU-Mercosur partnership agreement, which also introduces protection clauses requested by Italy, a new phase of discussion on the opportunities and risks for the European agri-food sector begins.
“We welcome the progress made in Brussels,” commented Giacomo Ponti, president of Federvini, “but it is essential that the protective measures are concrete, rapid, and truly enforceable. Only in this way can we ensure a balance between market openness and the protection of our production system. Made in Italy products cannot be made to compete with products that do not meet the same quality, environmental, and social standards. Any decision on ratifying the agreement must begin with the defense of our excellence.”
The Federvini president concludes by recalling that the wine and agri-food sectors are a pillar of the national economy and exports:
“The value of our supply chains lies not only in numbers, but in their ability to generate globally recognized identity, jobs, and quality. It is this heritage that Europe must protect as it opens new markets.”
Italia del Gusto: “EU-Mercosur Partnership Agreement, an opportunity to be seized with responsibility and clear rules”
The Italia del Gusto Consortium also welcomes the European Commission’s approval of the EU-Mercosur Partnership Agreement, which introduces safeguard mechanisms for European production for the first time.
The private consortium, which brings together Italian companies operating in the food and wine sectors, represents 37 brands with a combined turnover of €25 billion and 55,000 employees. It views the opening to Latin American markets as a concrete opportunity to strengthen the international presence of Italian companies, from established industrial concerns to the most innovative SMEs. However, the essential condition is that the protection clauses not remain on paper, but are implemented promptly and effectively.
“Italia del Gusto,” a statement reads, “deems it essential to constantly monitor the agreement’s effects and to promptly implement corrective measures in the event of market distortions. Only with clear rules and transparent controls will it be possible to generate real benefits without compromising the balance and competitiveness of our supply chains.”
The Consortium also emphasizes that the value of Made in Italy is based not only on quality and safety, but also on a globally recognized cultural and social model:
“The agreement must demonstrate its ability to reconcile commercial openness and the protection of national excellence, enhancing a production system that combines tradition and innovation.”
