A large-scale market with high growth potential
The provisional entry into force of the agreement between the Unión Europea y Mercosur (Argentina, Brasil, Paraguay y Uruguay), after more than 25 years of negotiations. The agreement connects two markets of more than 700 million consumers and eliminates more than 90% of bilateral tariffs. Mercosur, the average tariff will be reduced from 11% to 1%, generating savings of over 4.000 billion euros annually for European companies and an increase in trade of up to 40% in the long term.
| Key indicator of the agreement | Impact / Figure |
|---|---|
| Provisional entry into force | May 1th 2026 |
| Consumers reached | More than 700 million |
| Average tariff reduction (Mercosur) | From 11% to 1% |
| Estimated savings for European companies | > 4.000 billion euros annually |
| Expected trade increase | Up to 40% in the long term |
Mercosur It represents a market of great relevance and diversity, where Brasil concentrates most of the trade with the UEWhile Argentina It offers significant growth potential. Meanwhile, Uruguay y Paraguay They stand out for their stability and specific opportunities. This diversity allows companies design strategies tailored to each country and sectormaximizing its expansion potential.
In the case of EspañaThe impact will be gradual but positive: over five years, GDP would increase by around 0,17% and private consumption by 0,27%, accompanied by an increase in exports and employmentIn the longer term, further improvement in wages and economic activity is expected, reflecting a scenario of sustained growth driven by trade liberalization.
| Macroeconomic impact on España (at 5 years old) | Estimated growth |
|---|---|
| GDP increase | + 0,17 % |
| Increased private consumption | + 0,27 % |
Industry and agri-food: boosting competitiveness and international expansion
In the industrial sector, the agreement will eliminate tariffs on more than 91% of exported goodsCurrently, these tariffs reach up to 35% in sectors such as automotive, textiles, footwear, and leather; between 14% and 20% in machinery; and up to 18% in chemical products. Eliminating them will significantly improve the price competitiveness of European companies and facilitate their access to markets that have been limited until now.
| Industrial Sector | Current tariffs (to be eliminated) |
|---|---|
| Automotive, textiles, footwear and leather | Up to 35% |
| Machinery | Between 14% and 20% |
| Chemical products | Up to 18% |
In the agri-food sector, España It starts from a solid position, with exports to Mercosur worth 463 million euros. Products such as olive oil, wine, and fruit stand out, and their presence will be strengthened thanks to the elimination of tariffs and the recognition of 344 European geographical indications (products with protected origin), of which 59 are Spanish. This recognition reinforces the added value and differentiation of the products.
Furthermore, trade liberalization will allow companies to strengthen their international positioning and take advantage of economies of scale, in a context of expanding global demand for European products.
| Agri-food sector (España) | Outstanding figures |
|---|---|
| Value of current exports to Mercosur | 463 millones de euros |
| Protected European geographical indications | 344 |
| Protected Spanish geographical indications | 59 |
Services and SMEs: new growth opportunities in an expanding market
The agreement also boosts the services sector, reducing barriers in areas such as telecommunications, financial services, and transport, and facilitating professional mobility and access to public procurement. With nearly €390.000 billion already invested by the UE en Mercosur, Legal certainty and the environment for business implementation are strengthened.
For SMEs, which represent 97% of exporters, the elimination of tariffs of up to 35% means a significant reduction in the costs of accessing new marketsAdded to this is the simplification of procedures and greater transparency, factors that facilitate their internationalization process. In this context, and with trade growth estimated at between 37% and 40%, Spanish companies have a clear opportunity to expand their international presence and diversify risks.
A structural boost for internationalization
The agreement UE-Mercosur It will have a positive macroeconomic impact and, above all, introduces a structural change in trade relations: it reduces barriers, expands access to new markets, and strengthens the competitiveness of European companies. For Spanish companies, especially SMEs, this means a strategic opportunity for expansion in a growth environmentIts success will depend on the ability to adapt the strategy, capitalize on competitive advantages, and position itself in a market with high long-term potential.
Diego Lapeña
Business Consultant at Gedeth Network
Key points and frequently asked questions about this analysis
What are the immediate benefits of the trade agreement?
The elimination of over 90% of tariffs, reducing the average in the South American region from 11% to 1%, will result in direct savings exceeding €4.000 billion annually for exporting companies in the European market.
What impact will this have on different industrial sectors?
They will benefit enormously from the elimination of customs duties, which currently range between 14% and 35%. Vital sectors such as footwear, automotive, textiles, machinery, and the chemical industry will gain direct competitiveness through price.
Why does it represent a strategic advantage for small and medium-sized enterprises?
Given that SMEs make up 97% of the export sector, the drastic reduction in tariff costs, coupled with greater transparency and simplification of customs procedures, provides them with an agile and direct channel to internationalize and diversify their risks in the face of a trade volume that will grow by around 40%.