From 1 May the trade agreement between the European Commission and Mercosur comes into provisional application. An intermediate phase, but already fully operational, which opens the markets between the two sides of the Atlantic after negotiations lasting over twenty-five years and completed with the signing of the agreement in January.
Brussels has notified its South American partners of the start of procedures allowing for the early activation of the agreement. Argentina, Brazil and Uruguay have already ratified, while Paraguay is completing the process. The legal architecture thus allows partial entry into force even in the absence of definitive ratification by all the Member States of the Union.
Duties reduced, selective opening of markets
The immediate effect concerns the progressive reduction of duties on a series of products, with the aim of making trade more predictable and strengthening opportunities for European companies in South American markets. The opening, however, is not uniform: liberalization proceeds in segments and remains tied to specific quotas and conditions for the most delicate sectors.
In parallel, the European Union has strengthened its control system through a regulation dedicated to safeguard clauses, designed to intervene in the event of sudden disruptions to the internal market. The device allows the Commission to activate temporary measures when the increase in imports or price dynamics put European supply chains under pressure.
A permanent monitoring system
The new structure is based on a principle of continuous surveillance. European institutions are called upon to constantly monitor the evolution of trade flows, cross-referencing data on imports, production, prices and market shares. In the presence of signs of imbalance, the system can activate rapid checks and, in the most critical cases, temporary interventions.
This is a mechanism designed to make trade openness compatible with the stability of internal supply chains, especially in the agricultural sectors most exposed to international competition.
Sensitive products under protection regime
The center of the system concerns the definition of the so-called “sensitive products”, for which access to the European market remains regulated by tariff quotas and specific protection measures.
This category includes the main fresh, chilled, frozen and processed beef and pork meats, together with both boneless and boneless poultry meat. The dairy sector is also affected, with powdered milk, cheese and infant formula subject to quantitative limits.
Protected agricultural products include rice, corn, sorghum and sugars in various forms, as well as eggs and derivatives such as ovalbumin. Honey and garlic are among the monitored productions, together with starches and their derivatives.
A significant part also concerns energy and industrial products of agricultural origin, such as ethanol and biodiesel, as well as alcoholic beverages derived from sugar cane, including rum and other spirits.
Citrus fruits are also included in the scope of attention, with oranges, lemons and mandarins identified through specific tariff codes that regulate their entry into the European market.
A balance yet to be verified
The framework of the agreement moves on a delicate balance between commercial openness and capacity for corrective intervention. The European Commission may suspend tariff preferences or reintroduce temporary duties if concrete risks for the Union industry emerge. The phase that opens from May 1st will therefore also be a test bed: it will measure the resilience of European supply chains in the face of greater international exposure and the ability of the new commercial governance system to intervene quickly in the event of tensions.
