Mercosur–EU agreement: A historic signing (and the new legal brake in 2026)
Date of publication: March 19, 2026
Overview
After nearly three decades of negotiations, the agreement between Mercosur and the European Union (EU) was signed on January 17, 2026, after the EU Council authorized the signature on January 9, 2026. The signing is a political milestone, but it does not amount to the full entry into force of the package—especially its trade core—which remains subject to formal approval steps and/or provisional application.
A key factor of uncertainty in 2026 is the European Parliament's decision to request an opinion from the Court of Justice of the European Union (CJEU) before voting on consent, which is likely to reduce the predictability of the ratification timeline in the EU.
The EU Council authorized the signing of two instruments, with distinct scopes and institutional tracks:
EMPA (EU–Mercosur Partnership Agreement)
A broader instrument aimed at the bi-regional relationship, including political dialogue and cooperation across multiple areas.
iTA (Interim Trade Agreement / Provisional Trade Agreement)
An instrument focused on the core trade component, designed to advance through a more direct path and, in practice, facilitate the provisional application of trade-related provisions, while the broader "umbrella" agreement may require additional steps. It should be noted that it will be automatically repealed once the Partnership Agreement (EMPA) fully enters into force, following the completion of the ratification process.
Timeline (2024–2026) — updated as of March 5, 2026
- December 6, 2024:Announcement of the conclusion of negotiations.
- January 9, 2026:EU Council authorizes the signing (EMPA + iTA).
- January 17, 2026:signing of the package in Asunción (Paraguay).
- January 21, 2026:European Parliament decides to request a CJEU opinion before giving consent.
- February 10, 2026:European Parliament approves text related to agricultural safeguards (a step in the EU legislative process).
- February 25, 2026:Chamber of Deputies approves the provisional agreement (iTA) and sends it to the Senate (PDL 41/2026).
- February 27, 2026:Mercosur announces activation of the provisional application mechanism and describes the logic for entry into effect after internal notifications, with reference to commencement on the "first day of the second month" after the formal conditions are met.
- February 27, 2026:European Commission announces steps toward provisional application following initial ratifications in Mercosur, reiterating that final completion depends on the European Parliament.
- March 4, 2026:Federal Senate unanimously approves the provisional agreement (PDL 41/2026), with indication of a pending promulgation step by the President of Congress to complete the reported legislative cycle.
- March 4, 2026:Brazil publishes Decree No. 12,866/2026, regulating internal rules/procedures for bilateral safeguards in trade agreements.
- March 5, 2026:EU Council formally adopts a regulation on bilateral agricultural safeguards under the EU–Mercosur framework, including triggers and expedited deadlines (according to the institutional communication), as well as monitoring/reporting requirements.
Signing is not entry into force: What to watch in 2026
In Brazil (and in Mercosur): Internalization and readiness for provisional application
The progress of the iTA in Brazil's legislative process (Chamber approval on February 25, 2026, and Senate approval on March 4, 2026) reduces domestic uncertainty and increases readiness for the provisional application mechanism to operate once the formal conditions and notifications are completed within Mercosur.
At the same time, Decree No. 12,866/2026 organizes the domestic "toolbox" for investigating and applying bilateral safeguards in response to import surges under tariff preferences that may cause (or threaten to cause) serious injury to domestic industry.
In the European Union: provisional application vs. the CJEU legal "brake"
On the European side, two vectors coexist:
- Provisional application: institutional signaling toward moving forward with the provisional application of parts of the trade package, in accordance with procedural requirements.
- Legal brake: the European Parliament voted to refer the agreement to the EU Court of Justice, thereby delaying the Parliament's consent, and making the timing of the consent less predictable.
Safeguards in the spotlight (EU and Brazil)
In 2026, safeguards have gained prominence as a sectoral risk-management mechanism in a trade liberalization context.
EU: bilateral agricultural safeguards
The EU Council announced the formal adoption of a regulation implementing bilateral safeguards for agricultural products, with provisions for triggers and faster procedures, in addition to monitoring obligations for the Commission.
Brazil: Decree No. 12,866/2026
The decree establishes the internal procedure to investigate and, where appropriate, apply measures such as suspension of the tariff reduction schedule, reinstatement of a previous tariff, or instruments such as tariff-rate quotas (in accordance with the design of the agreement and the domestic regulation), with institutional roles assigned to Camex and Secex/MDIC.
What the agreement is intended to change
Without altering the central concept of the agreement, the package is designed to modernize and discipline issues such as:
- tariff reduction (with transition periods, exceptions, and sensitive sectors);
- sanitary and phytosanitary measures;
- intellectual property;
- government procurement;
- environmental and labor commitments, with transparency and monitoring mechanisms.
Conclusion
The signing on
January 17, 2026
was a significant milestone, but the implementation of the trade core still depends on additional steps—most notably the CJEU opinion requested on January 21, 2026
, which may prolong or reshape the European consent timetable.At the same time, Brazil's progress on the iTA (
February 25, 2026
, and March 4, 2026
) and the strengthening of safeguards (in both the EU and Brazil) suggest an implementation environment oriented both toward market opening and toward rapid-response mechanisms for sectoral shocks.To support this journey, Thomson Reuters offers specialized solutions such as
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