The EU-Mercosur agreement comes into force and opens up a historic opportunity for Argentina

The trade agreement between the European Union and Mercosur began to take effect provisionally, marking a turning point after more than 25 years of negotiations.

For Argentina, the beginning of this phase represents a concrete opportunity for export expansion, investment and growth, in line with the strategy of economic opening promoted by the government of Javier Milei.

A market of 700 million people

The agreement creates one of the largest commercial spaces in the world.

Among its key points:

• Elimination of more than 90% of tariffs

• Integration of markets between Europe and South America

• Progressive application by sector

The implementation will be gradual, with deadlines of between 7 and 18 years depending on

the product.

What changes from today for Argentina

Since the entry into force:

• Several Argentine products begin to be exported with a 0% tariff

• Others start progressive reduction schemes New export quotas are

• enabled

Among the main benefits:

• Peanuts, legumes and oils are already entering tariff-free

• Soy and derivatives drop from 6% to 0% Citrus fruits and wines will have progressive access This directly improves the

Argentinian competitiveness vis-a-vis other global exporters

.

Agribusiness: the main driver of the agreement

The

sectors most benefited will be:

• Beef Meat Poultry

• Soybean Complex

• Peanuts

• and regional economies

The beef quota, for example, will allow 99,000 tons to be exported

annually with a preferential tariff.

Investments: the Milei effect

The agreement not only impacts trade, but also

investment.

According to private estimates:

• Exports could grow 79% by 2030

European investments could double

The annual flow could reach USD 4 billion

.

The new framework reduces perceived country risk and strengthens international confidence

.

Clear rules and predictability

One of the central points of the agreement is legal certainty

.

The Government has already moved forward with regulations to:

• Distribute export quotas

• Define requirements for companies

• Ensure transparency

This allows companies to plan for the long term

.

Challenges: European requirements

Access to the European market also implies new conditions:

• Mandatory environmental traceability

• Stronger phytosanitary controls

• Rules of origin in industrial sectors In

particular, Europe will require batch-by-lot geolocation in

soybeans from 2026.

Political tensions in Europe

The agreement was not without resistance

.

Countries such as France:

• They criticized the impact on their agribusiness

• They tried to slow down implementation However, the

progress of the pact reflects a geopolitical shift:

• Europe seeks counterweight against China It

• reinforces its link with Latin America

A paradigm shift for Argentina The

beginning of the EU-Mercosur agreement marks a

new phase.

For Argentina:

• Expands markets

• Improves competitiveness

• Attracts investments

In a challenging global context, the country succeeds in inserting itself into one of the most important economic blocs in the world, consolidating a model based on openness,

production and exports.