The European Union is moving rapidly towards its integration with Latin America in response to the global geopolitical reconfiguration and growing economic uncertainty. The European Commission (EC) announced on Tuesday (02.09.2025) that it has submitted its proposals to the Council for the signing of the EU-Mercosur Association Agreement (EMPA) and the EU-Mexico Modernized Comprehensive Agreement (MGA), which seek to strengthen strategic ties and open new business opportunities in the region.
These agreements not only eliminate trade barriers, but also establish a common regulatory framework based on shared valuesAs the European Commission emphasized in the statement released: "Both agreements reaffirm the EU's joint commitment to human rights, multilateralism, and international peace and security. Furthermore, they strengthen cooperation on key issues such as sustainable development, the fight against transnational organized crime, and migration, consolidating the political and ethical dimension of these agreements alongside their economic benefits."
In December 2024, the EU concluded negotiations on the association agreement with MERCOSUR (Brazil, Argentina, Uruguay, and Paraguay), and in January it did the same with the modernized global agreement with Mexico, marking milestones in Europe's trade diversification strategy.
The agreements will generate billions of euros in new export opportunities for companies of all sizes, support hundreds of thousands of jobs, and strengthen critical value chains, including access to strategic raw materials. They will also help modernize and stabilize supply chains amid growing geopolitical uncertainty. In detail:
MERCOSUR: the largest free trade zone in the worldThe EMPA agreement with Argentina, Brazil, Paraguay, and Uruguay will open a market of more than 700 million consumers. It is estimated that EU exports could increase by up to 39% (€49.000 billion), supporting more than 440.000 jobs. Benefits include tariff reductions on industrial products such as cars, machinery, and pharmaceuticals, and an expected growth of almost 50% in agri-food exports, such as wines, chocolate, and olive oil. The agreement protects European agricultural interests through preferential import limits and robust safeguards.
Mexico: strategic market and access to raw materialsThe modernized MGA will eliminate prohibitive tariffs on European agri-food products—cheeses, meats, pasta, chocolate, and wine—increasing their competitiveness in Mexico. It will also facilitate access to critical raw materials, benefiting strategic European industries. The agreement strengthens cooperation on sustainable development, human rights, multilateralism, security, and climate change.
Next steps
According to the European Commission, both agreements require the approval of the European Parliament and the Member States before entering into force. Furthermore, they will be implemented Interim Trade Agreements, which will allow to apply voluntarily the parts of exclusive EU competence immediately.
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