The European Dairy Association welcomes the next step for the EU-Mercosur Free Trade Agreement

The formal adoption of EU-Mercosur Free Trade Agreement is the next decisive step for this landmark agreement. The EU and the Mercosur countries are reinforcing their commitment to free, fair, and sustainable trade, delivering enhanced market access, diversifying supply chains, fostering investments, and strengthening cooperation on sustainable development.

“This represents a major breakthrough, especially in today’s challenging trade environment, highlighting the EU’s trade ambitions the success of its negotiations, and will be sure to bring economic growth and
resilience to Europe”, stated Alexander Anton, EDA secretary general.

According to the EU Commission, EU annual exports are expected to rise by 39%, GDP is projected to rise by €77.6bn and agri-food exports are projected to increase by almost 50%, thanks to this agreement.
From a dairy perspective, all 4 countries forming the Mercosur area have an impressive dairy culture, with a self-sufficiency rate between 98 % and 281 %. The deal will allow both parties to implement and secure
unhindered access for our European dairy exports, including the reduction and abolishment of tariffs as well as non-tariff barriers with adopted legal safeguards to protect over 350 high-quality European food
products.

The agreement’s TRQ (tariff rate quota) of 30.000 tons of cheese is about ten times the amount currently being exported to Mercosur countries. The agreement is important in preserving our competitiveness and will provide important diversified export markets and the portfolio of suppliers for critical inputs. In 2024 alone, the European milk processing industry contributed more than €18 billion to the EU trade balance. With 10 of the world’s top 20 dairy companies based in Europe and more than 45.000 export-linked jobs and partnering with 530.000 dairy farmers, the European dairy industry is well-positioned to meet growing global
demand and support rural communities, creating both direct and indirect economic benefits.
By opening new markets in South America, the agreement ensures a stronger, more resilient, and globally competitive European dairy sector. Beyond immediate economic gains, the EU–Mercosur agreement demonstrates the shared commitment to fair and rules-based trade. At a time when international trade principles are being challenged, it reaffirms the EU’s dedication to cooperation, mutual agreement, and the values on which our Union was founded.