In a context of geoeconomic fragmentation and the reconfiguration of global value chains, Authorized Economic Operator (AEO) programs and their Mutual Recognition Agreements (MRAs) have become central instruments for facilitating trust-based trade. However, while the European Union (EU) has made progress in agreements with developed economies, no Latin American country—despite significant advances—has yet managed to finalize a mutual recognition agreement with the European bloc.
This is a crucial moment. The EU is one of the region's main trading partners, and trade in goods, especially with MERCOSUR, exceeded €111.000 billion in 2024, representing growth of over 36% in the last decade. This trade remains concentrated in primary products—such as soybeans, coffee, and meat—reflecting a still relatively undiversified international integration.
In this scenario, Authorized Economic Operator (AEO) Agreements allow two customs administrations to recognize their respective Authorized Economic Operator (AEO) programs as equivalent, granting reciprocal benefits to certified operators: fewer controls, priority clearance, and greater logistical predictability. In practice, they eliminate redundancies and create true “safe corridors” for international trade. Their foundation lies in the World Customs Organization's (WCO) SAFE Framework, which simultaneously promotes security and trade facilitation through global standards and cooperation between customs and the private sector.
But these agreements are not automatic. The EU requires genuine operational equivalence between systems: consolidated AEO programs, compatible risk management, secure information exchange, and robust legal frameworks. Above all, it assesses institutional capacity and consistency in the application of controls.
This level of rigor explains why the EU has signed RTAs with a limited number of partners—such as the United States, Japan, and Canada—characterized by high regulatory and technological standards. Latin America, on the other hand, has made significant but uneven progress.
Even so, the region has built a significant network of agreements. In 2022, ten countries—Argentina, Brazil, Chile, Colombia, Costa Rica, Guatemala, Paraguay, Peru, the Dominican Republic, and Uruguay—signed a regional regulatory agreement, one of the most ambitious efforts in the developing world. This is complemented by initiatives within MERCOSUR, the Andean Community, and the Pacific Alliance, demonstrating a clear commitment to regulatory integration.
Even more revealing is that several Latin American countries, including those in Central America and the Caribbean, have already reached agreements with key partners in the global system. Economies such as Mexico, Colombia, Peru, Brazil, Uruguay, the Dominican Republic, Costa Rica, and Guatemala have mutual recognition agreements with the United States, linked to the C-TPAT program. Similarly, South Korea has developed an active engagement strategy with the region, signing Mutual Recognition Agreements (MRAs) with Mexico, Peru, Colombia, Brazil, Uruguay, the Dominican Republic, and Costa Rica. This demonstrates that many Latin American countries have the capacity to meet demanding international standards.
The case of the Dominican Republic is illustrative. This Caribbean nation has signed agreements with both the United States and South Korea, demonstrating that even smaller economies can meet demanding standards and position themselves within trusted global networks. Moreover, both partners maintain agreements with the EU. This suggests that the obstacle to a regional trade agreement (RRA) between the EU and Latin American countries does not lie in a lack of individual capabilities.
The importance of this point is amplified when considering the region's productive structure. Although micro, small, and medium-sized enterprises (MSMEs) represent more than 99% of Latin American businesses, only about 10% export directly, compared to approximately 40% in the European Union. Furthermore, over 80% of export value is concentrated in large companies, which limits diversification and access for MSMEs to international markets.
This is where the debate on Authorized Economic Operators (AEOs) and Trade Reduction Agreements (TRAs) takes on a strategic dimension. The recent evolution of the SAFE Framework reflects precisely this concern. The latest edition of the standard explicitly incorporates the need to integrate micro, small, and medium-sized enterprises (MSMEs) into AEO programs, recognizing that their greater participation is essential for achieving more inclusive and efficient trade.
Similarly, a joint report by the WCO, the World Trade Organization and the International Chamber of Commerce underlines that the participation of SMEs is key for AEO programs to reach their full potential, by facilitating their integration into global supply chains and improving their competitiveness.
In this context, the recent agreement between the European Union and MERCOSUR opens a strategic window of opportunity. While it represents a milestone in terms of trade liberalization and market access, it does not include—at least for now—an OAS mutual recognition agreement between the two blocs. This absence highlights a significant gap: progress is being made in market access, but not in reducing operational frictions.
Closing this gap could have transformative effects. A regional trade agreement (RTA) between the EU and Latin America would not only reduce logistics times and costs, but would also contribute to democratizing international trade. For SMEs, it would mean moving from indirect participation—through intermediaries—to more direct integration into global value chains.
In short, Latin America has demonstrated its ability to build trust at both the bilateral and regional levels. The challenge now is to scale that trust, harmonize standards, and consolidate institutional capacities to engage in dialogue on equal footing with the European Union.
Because, ultimately, mutual recognition agreements not only facilitate trade: they also strengthen the security of the logistics chain and open up new competitive opportunities for SMEs.
Lawyer specializing in international economic law, customs andtrade facilitation. She has worked in the Customs Service of the Dominican Republic and inmultilateral organizations such as the Legal Advice Centre for WTO Affairs(ACWL) and the World Customs Organization (WCO) where he participated in initiativesof customs reforms, trade facilitation and capacity building forLatin America and the Caribbean. She currently serves as Commercial Director andGlobal Storage Spain Operations. Email[email protected]
