EU–Mercosur trade deal: what it means for transport and logistics

After decades of negotiations, the member states of the European Union gave political approval in early January 2026 to the free trade agreement with the four South American Mercosur countries—Brazil, Argentina, Uruguay and Paraguay. The signing is scheduled for mid-January in Asunción, after which the European Parliament must still give its consent.

The agreement will create one of the world’s largest free trade areas, with more than 700 million people and around one fifth of global economic output. According to the European Commission, more than 90 percent of tariffs are to be gradually dismantled in the future. Companies could save around four billion euros in duties each year as a result.

What the agreement specifically means for transport and logistics

For the transport and logistics sector, the EU–Mercosur agreement is of central importance. With the reduction of tariffs and trade barriers, bilateral trade volumes are likely to rise significantly—along with demand for sea, air and land transport.

According to figures from the European Commission, the Mercosur countries imported goods worth around €53 billion from the EU in 2024, while EU exports to the region reached about €57 billion. Studies suggest that exports could increase by up to 39 percent once the agreement enters into force.

For logistics service providers, this means:

• rising container and general cargo volumes at ports,
• higher demand for project, automotive and machinery logistics,
• growing importance of multimodal transport chains between Europe and South America,
• additional requirements for customs clearance, certificates of origin and compliance.

Germany Trade & Invest also notes that the agreement facilitates access to critical raw materials such as lithium and copper—an important factor for battery logistics, e-mobility and renewable energy.

Automotive, mechanical engineering, chemicals: volume drivers for logistics

Industries that are already closely integrated into global supply chains are likely to benefit particularly strongly. These include machinery and plant engineering, the chemical and pharmaceutical industry, and the automotive sector.

The President of the German Association of the Automotive Industry, Hildegard Müller, described the EU’s approval as “long overdue and very good news for Europe as a business location.” The reduction of previously high tariffs—up to 35 percent on passenger cars and 18 percent on vehicle parts—opens up significant growth potential. Rising demand from the Mercosur region would have an impact along the entire European value creation and logistics chains.

Why the resistance was so strong—protests and strikes

Despite the economic opportunities, the agreement was highly controversial politically. In France in particular, there were recently massive protests by farmers. Tractor blockades on motorways and access roads to ports and logistics centres caused significant disruption to national and international freight transport.

The background is concern that cheaper agricultural imports from South America—such as beef, poultry, sugar or ethanol—could massively increase competitive pressure on European producers. Although the agreement provides for safeguard clauses and import quotas, many associations consider these insufficient.

For the logistics industry, the protests had immediate consequences: delayed supply chains, longer transit times and higher costs. At the same time, they show how strongly trade policy decisions can affect operational processes in transport.

Views from business and industry

In industry, however, support still predominates. Tanja Gönner, Director General of the Federation of German Industries, said the agreement was “an important success for the German and European economy.” Mercosur would bring tangible benefits, strengthen competitiveness and send a clear signal in favour of free, rules-based global trade.

The Head of Foreign Trade at the German Chamber of Industry and Commerce, Volker Treier, also stressed that, given the current economic crisis, opening up new markets is crucial. The agreement would secure supply chains, improve access to raw materials and increase the region’s attractiveness as an investment location.

Timeline and uncertainties remain

Despite political approval, the agreement has not yet entered into force. After signing, the European Parliament’s consent will follow. Parts of the agreement could then be applied provisionally. Full ratification by national parliaments, however, could drag on until 2028.

For transport and logistics companies, this means: the announced customs benefits do not yet apply. Companies should analyse their trade flows, check rules of origin and develop scenarios for the staged reduction of tariffs—but implement operational adjustments only after formal application.

Conclusion: great opportunities, complex implementation

The EU–Mercosur agreement has the potential to significantly boost transatlantic trade flows and open up new growth opportunities for transport and logistics service providers. At the same time, the political risk remains high—not least because of resistance from agriculture and the sensitive issue of sustainable supply chains.

For the industry, the deal above all means one thing: more volume, more complexity, and a further growing importance of customs, compliance and network expertise.