Machine industry calls for provisional application of EU-Mercosur agreement - EU-Mercosur trade deal could slash machinery export costs by 11%
A major trade deal between the EU and Mercosur countries could soon open new opportunities for Europe's mechanical and plant engineering industries. The agreement promises to remove tariffs that currently add an average of 11 percent to machinery exports. However, full implementation still faces hurdles as national ratifications remain pending.
The EU-Mercosur trade agreement, signed in January 2026, aims to create one of the world's largest free trade zones. It would eliminate most tariffs between the two regions, benefiting sectors like mechanical engineering. Yet, none of the 27 EU member states have officially ratified the deal, leaving its future uncertain.
Argentina and Uruguay have already approved the agreement, clearing the way for provisional application. But the European Commission has not yet activated interim measures. Instead, it is waiting for the European Parliament to refer the deal to the European Court of Justice for a legal review.
Germany's mechanical engineering sector is now urging the EU to implement parts of the agreement provisionally. This push comes as businesses seek faster access to reduced trade barriers. Without provisional measures, the full benefits of the deal remain out of reach for now.
The trade agreement could significantly cut costs for European machinery exporters once fully in force. For now, the process depends on legal reviews and national approvals across the EU. Until then, industries will have to wait for the tariff reductions promised by the deal.
