EU and Mercosur seal major trade agreement as businesses call for swift ratification

The signing of the EU-Mercosur Trade Agreement on 17 January marks a major step in global trade relations. After more than two decades of negotiation, both sides have finally reached a deal that forms the world’s largest trading bloc. European industries, represented by over 28 sectoral associations, have welcomed the move with strong support.

The agreement opens access to a market of more than 270 million consumers. With the removal of trade barriers and the phasing out of tariffs on over 90 percent of EU exports, European companies are set to gain wider reach across South America. This shift is expected to help businesses grow their export volumes, diversify supply chains, and secure essential raw materials from Mercosur countries.

According to calculations from the European Commission’s Directorate-General for Trade, the deal could add 77.6 billion euros to the EU economy by 2040. Export growth to Mercosur is projected to rise by 39 percent, giving European producers—from chemicals and automotive parts to textiles, beverages, and dairy—fresh momentum in a competitive global landscape.

Now that the agreement has been signed, attention turns to the European Parliament. Several industry groups are urging Members of Parliament to give their consent without delay. After more than 25 years of discussion, they believe ratification is the final step needed to unlock new economic opportunities.

Below is the list of European business associations publicly supporting the agreement:

• European Automobile Manufacturers’ Association (ACEA)
• AmCham EU
• BusinessEurope
• CAOBISCO – Association of Chocolate, Biscuit and Confectionery Industries of Europe
• CEC – European Footwear Confederation
• CECE – Committee for European Construction Equipment
• CECIMO – European Association of Manufacturing Technologies
• CEEV – Comité Vin
• CEFIC – European Chemical Industry Council
• Cepi – Confederation of European Paper Industries
• Cerame-Unie – European Ceramic Industry Association
• CIUS – European Sugar Users
• CLEPA – European Association of Automotive Suppliers
• COTANCE – Confederation of National Associations of Tanners and Dressers
• EBCA – European Branded Clothing Association
• EDA – European Dairy Association
• ESF – European Services Forum
• ESRA – European Sugar Refineries Association
• Eucolait
• EURATEX – European Apparel and Textile Confederation
• Eurochambres
• European Entrepreneurs CEA-PME
• European Metals
• Medicines for Europe
• Orgalim – Europe’s Technology Industries
• spiritsEUROPE
• The Brewers of Europe
• Toy Industries of Europe (TIE)

These groups represent a wide share of European production, trade, and services. Their joint support reflects a shared belief that the deal can strengthen competitiveness and bring long-term benefits to both regions.