EU-Mercosur Agreement to Provisionally Enter into Force in May, Opponents Worry About Market Concentration Risk
The trade agreement between the European Union and Mercosur will provisionally enter into force on May 1st. This will eliminate or significantly reduce tariffs on key goods such as automobiles and pharmaceuticals, but opponents are concerned about the risk of excessive market concentration.
📋 Article Processing Timeline
- 📰 Published: April 30, 2026 at 22:17
- 🔍 Collected: April 30, 2026 at 22:31 (14 min after Published)
- 🤖 AI Analyzed: May 1, 2026 at 04:07 (5h 35m after Collected)
Central News Agency
(Central News Agency reporter Wu Bai-wei, Brussels, 30th) The trade agreement signed between the European Union and Mercosur will provisionally enter into force on May 1st. The EU states that tariffs on key goods, including automobiles, pharmaceuticals, wine, spirits, and olive oil, will be eliminated or significantly reduced. Opponents, however, criticize that the agreement may lead to the risk of excessive market concentration.
After 25 years of negotiations, the EU and Mercosur signed a free trade agreement in January this year to reduce tariffs and promote bilateral trade. This is the largest trade agreement in the EU's history. European Commission President Ursula von der Leyen and European Council President Antonio Costa will hold a video conference tomorrow with leaders of Mercosur countries.
According to a press release from the European Commission, von der Leyen emphasized that a lot of effort was invested in making this agreement successful in the past; now, the same effort should be invested to ensure that citizens and businesses can immediately reap the benefits. From the first day of the agreement's implementation, tariffs will be reduced, and new market opportunities will open up.
She said this is good news for EU businesses of all sizes, consumers, and farmers. Farmers, in particular, receive protection in sensitive areas while also gaining new export opportunities.
Maros Sefcovic, the European Commissioner for Trade, said that the core of the trade agreement is the buying and selling of goods and services under reciprocal rules, which will be the focus of work for some time to come. The European Commission has begun intensive communication with EU businesses to ensure they have all the information needed to explore business opportunities.
The EU points out that Mercosur is a market with over 700 million people, and this agreement will gradually eliminate or significantly reduce tariffs on major EU export goods entering the Mercosur market, including automobiles, pharmaceuticals, wine, spirits, and olive oil.
For the agricultural sector, the EU emphasizes that this agreement is expected to increase EU agricultural exports to Mercosur by 50%, and EU farmers and agricultural processors will also enjoy lower tariffs, thereby enhancing the competitiveness of their products in the Mercosur market.
Although it is about to be implemented, the agreement continues to be criticized by opponents.
According to Euronews, citing a letter initiated by MEP Benoit Cassart, the agreement allows Latin American countries to manage quota allocation, and Mercosur's agricultural giants may monopolize quotas. Furthermore, tariff reduction quotas make it easier for some large exporters to enter the European market and secure sales.
The letter calls on the European Commission to remove beef and poultry from the quota management system so that control can be fully in the hands of the EU. If this goal cannot be achieved, a review clause should be introduced, allowing the EU to re-evaluate based on indicators such as the concentration of trade volume and the number of beneficiaries of quotas. (Editor: Zhang Zhixuan) 1150430
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(Central News Agency reporter Wu Bai-wei, Brussels, 30th) The trade agreement signed between the European Union and Mercosur will provisionally enter into force on May 1st. The EU states that tariffs on key goods, including automobiles, pharmaceuticals, wine, spirits, and olive oil, will be eliminated or significantly reduced. Opponents, however, criticize that the agreement may lead to the risk of excessive market concentration.
After 25 years of negotiations, the EU and Mercosur signed a free trade agreement in January this year to reduce tariffs and promote bilateral trade. This is the largest trade agreement in the EU's history. European Commission President Ursula von der Leyen and European Council President Antonio Costa will hold a video conference tomorrow with leaders of Mercosur countries.
According to a press release from the European Commission, von der Leyen emphasized that a lot of effort was invested in making this agreement successful in the past; now, the same effort should be invested to ensure that citizens and businesses can immediately reap the benefits. From the first day of the agreement's implementation, tariffs will be reduced, and new market opportunities will open up.
She said this is good news for EU businesses of all sizes, consumers, and farmers. Farmers, in particular, receive protection in sensitive areas while also gaining new export opportunities.
Maros Sefcovic, the European Commissioner for Trade, said that the core of the trade agreement is the buying and selling of goods and services under reciprocal rules, which will be the focus of work for some time to come. The European Commission has begun intensive communication with EU businesses to ensure they have all the information needed to explore business opportunities.
The EU points out that Mercosur is a market with over 700 million people, and this agreement will gradually eliminate or significantly reduce tariffs on major EU export goods entering the Mercosur market, including automobiles, pharmaceuticals, wine, spirits, and olive oil.
For the agricultural sector, the EU emphasizes that this agreement is expected to increase EU agricultural exports to Mercosur by 50%, and EU farmers and agricultural processors will also enjoy lower tariffs, thereby enhancing the competitiveness of their products in the Mercosur market.
Although it is about to be implemented, the agreement continues to be criticized by opponents.
According to Euronews, citing a letter initiated by MEP Benoit Cassart, the agreement allows Latin American countries to manage quota allocation, and Mercosur's agricultural giants may monopolize quotas. Furthermore, tariff reduction quotas make it easier for some large exporters to enter the European market and secure sales.
The letter calls on the European Commission to remove beef and poultry from the quota management system so that control can be fully in the hands of the EU. If this goal cannot be achieved, a review clause should be introduced, allowing the EU to re-evaluate based on indicators such as the concentration of trade volume and the number of beneficiaries of quotas. (Editor: Zhang Zhixuan) 1150430
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency "First-hand News" APP to grasp the latest news instantly.
The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.