BRUSSELS, 30th April, 2026 (WAM) -- The interim trade agreement between the European Union and the Mercosur bloc of South American countries will enter provisional application from tomorrow, 1st May, in a move the EU said will deliver immediate and tangible benefits to European businesses, workers and citizens by reducing tariffs and opening new opportunities in one of the world's largest trading regions.

On this occasion, European Commission President Ursula von der Leyen, alongside European Council President Antonio Costa, will participate in a video conference with leaders of the four Mercosur countries.

Von der Leyen said the agreement represents "a good day for Europe's competitiveness, resilience and strategic position", noting that tariffs will be reduced from day one and new opportunities will open for companies of all sizes, while also providing European farmers with new export prospects while fully safeguarding sensitive sectors.

For his part, European Commissioner for Trade and Economic Security Maro efovi said that 1st May marks "a major day for the European Union in trade", adding that the Commission has already launched intensive outreach to European companies, including small and medium-sized enterprises, to ensure they benefit from the opportunities created by the agreement.

The deal provides for the gradual elimination of tariffs on more than 91 percent of EU goods exported to Mercosur, a market of over 700 million people, and will from tomorrow remove or reduce duties on key exports including cars, pharmaceuticals, wine, spirits and olive oil.

European farmers and food producers will benefit from reduced or eliminated tariffs, enhancing the competitiveness of their products in Mercosur markets. The EU expects its agri-food exports to the region to increase by 50 percent, with initial tariff quotas and reductions taking effect from tomorrow.

A total of 344 protected European geographical indications will receive legal protection in Mercosur markets, preventing imitation or misuse.

The agreement will also see the removal of several non-tariff and technical barriers, including conformity assessment rules, labelling requirements and adherence to international standards, facilitating European companies' access to the market.

Public procurement markets will be opened to European companies, allowing them to compete for government contracts at both federal and local levels on equal terms with domestic firms.

The EU expects these combined gains to increase its annual exports to the Mercosur region by 39 percent by 2040, reaching 50 billion per year.