After more than 25 years of negotiations, the Partnership Agreement between Mercosur and the European Union (“EU“) was signed on January 17, 2026[1], together with the Interim/Provisional Trade Agreement. The signing of these instruments represents a historic milestone between the two regions, with the potential to strengthen trade, political and cooperation relations[2] between the two largest economic blocs in the world[3].

The agreements aim to “promote the exchange of goods and services, investment and economic development in a balanced manner,”[4] in addition to reaffirming the blocs’ commitment to multilateralism in times of fragmentation. Both blocs also presented comprehensive trade liberalization offers, from which the EU would eliminate tariffs on 92% of Mercosur exports, and Mercosur would eliminate tariffs on 91% of EU exports[5], as well as preferential and regulated access for a range of other products. Brazil[6] and the EU[7] estimate a positive impact of the partnership in the form of economic growth, investments, improved consumer price levels and jobs.

Despite the positive outlook, the practical implementation of the commitments still depends on the entry into force of both instruments, which requires the fulfillment of certain steps. In summary, after the signature, the signatory countries initiate the procedures of internalization, ratification and, only then, the Agreement enters into force, as illustrated in the flowchart below:

Source: Ministry of Foreign Affairs, “Mercosur-European Union Partnership Agreement Factsheet”, available in https://www.gov.br/mre/pt-br/assuntos/politica-externa-comercial-e-economica/agenda-de-negociacoes-externas/factsheet-acordo-de-parceria-mercosul-uniao-europeia, prepared by the authors.

[1] Available in https://www.gov.br/mdic/pt-br/assuntos/noticias/2026/comunicado-conjunto-sobre-a-assinatura-do-acordo-de-associacao-entre-o-mercosul-e-a-uniao-europeia, access in January 2026.

[2] Ibid. A similar comment was made by the EU in https://ec.europa.eu/commission/presscorner/detail/en/ip_26_113, access January 2026.

[3] Available in https://www.gov.br/mre/pt-br/assuntos/politica-externa-comercial-e-economica/agenda-de-negociacoes-externas/factsheet-acordo-de-parceria-mercosul-uniao-europeia, access in January 2026.

[4] Available in https://www.gov.br/mdic/pt-br/assuntos/noticias/2026/comunicado-conjunto-sobre-a-assinatura-do-acordo-de-associacao-entre-o-mercosul-e-a-uniao-europeia, access in January 2026.

[5] Available in https://www.europarl.europa.eu/legislative-train/carriage/eu-mercosur-association-agreement/report?sid=9801, access in January 2026.

[6] Available in https://www.gov.br/mre/pt-br/assuntos/politica-externa-comercial-e-economica/agenda-de-negociacoes-externas/factsheet-acordo-de-parceria-mercosul-uniao-europeia, access in January 2026.

[7] Available in https://ec.europa.eu/commission/presscorner/detail/en/ip_26_113, access in January 2026.

From a legal and institutional point of view, two instruments were signed: (i) the Mercosur-EU Partnership Agreement and (ii) the Interim/Provisional Trade Agreement. The Partnership Agreement is more comprehensive, including not only trade and investment themes, but also with political dialogue, cooperation and sectoral engagement in areas such as sustainable development, environment, digital transformation, human rights, mobility, anti-terrorism and crisis management[1]. Due to the themes included in it, the Partnership Agreement will need to be ratified by all EU Member States, after the respective internal approval procedures[2].

The Interim/Provisional Trade Agreement, on the other hand, will be focused exclusively on the trade and investment liberalization pillar of the Partnership Agreement, which are part of the scope of the EU’s exclusive competences and, therefore, requiring only ratification by the bloc itself[3]. Thus, the Interim/Provisional Agreement is expected to enter into force before the Partnership Agreement, with the aim of anticipating the enjoyment of the economic benefits of the negotiated trade commitments. The Interim/Provisional Agreement will expire when the Partnership Agreement enters into force[4].

Considering the broadness and relevance of the topic, this is the first article in the Nasser Advogados series on the Mercosur-EU Agreement. In the following articles, we will analyze different chapters and topics addressed by the signed instruments. Follow our social networks and the website for future publications.

[1] Ibid.

[2] Available in https://www.consilium.europa.eu/en/policies/eu-mercosur-agreements-explained/, access in January 2026.

[3] Available in https://ec.europa.eu/commission/presscorner/detail/en/ip_26_113, access in January 2026.

[4] Ibid.