The EU-Mercosur interim Trade Agreement (iTA) and market access for agriculture – Tariffs, quotas and a new mechanism for enabling sustainable trade

Since 1 May 2026, the Interim Trade Agreement (ITA) between the European Union and the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) has been in force. To support a better understanding of this new framework, this publication analyzes the implications of the agreement for the agricultural sector from a European Union perspective.

The study examines how tariff reductions and the establishment of import and export quotas can expand trade opportunities between the two blocs, while at the same time maintaining safeguard mechanisms for products considered sensitive.

In addition to the traditional market access measures included in the agreement, the publication highlights an important innovation: the creation of instruments designed to promote trade in products associated with forest conservation and the sustainable use of natural resources, as well as the establishment of criteria defining what constitutes a “sustainable product.” The proposal provides for trade benefits and technical support for value chains that contribute to the sustainability agenda.

According to the authors’ assessment from the European Union, Brazilian products such as beef, orange juice, honey and açaí could benefit from the new rules, while European exporters will enjoy improved conditions for marketing products such as beverages, malt, chocolate and other processed food products in Mercosur countries.

Finally, the authors argue that the new sustainable trade incentive mechanism has the potential to strengthen cooperation and dialogue between the European Union and Mercosur, reconciling economic development, the inclusion of small-scale producers and environmental conservation.