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On January 9, 2026, the European Union and the South American block Mercosur (Brazil, Argentina, Paraguay, Uruguay) took a major step towards the signing of a historic trade agreement after more than 25 years of negotiations. Potentially opening access to a market of more than 700 million consumers. The European Commission has proposed the provisional application of certain trade provisions before full ratification by the European Parliament, which constitutes a turning point in the management of major international agreements and changes the assessment of risks and opportunities for economic actors.
This early entry into force strategy aims to allow certain tariff and trade elements of the Treaty to be applied before they are formally ratified by the parliaments of the EU Member States as well as by the Mercosur countries. Traditionally, parliamentary ratification is an essential step before any international agreement of this size comes into force. By putting forward partial application upon signature, the European Commission seeks to reduce legal uncertainty and rapidly unlock business opportunities for European businesses, while leaving the final decision to Parliament.
For entrepreneurs, this prospect of early entry into force changes strategic calculations. The provisional application of tariff advantages, in particular the reduction or even the elimination of numerous customs duties, can accelerate access to new markets and strengthen the competitiveness of European exporters in sectors such as manufacturing, processed food and services. It can also facilitate the integration of transcontinental supply chains and offer more favourable conditions for investments.
This advance will not be without controversy or risk. The text is still subject to debate in the European Parliament, where some elected officials want additional guarantees, in particular in terms of agricultural and environmental protections. At the same time, safeguard mechanisms have been negotiated to allow the EU to suspend tariff preferences if imports cause serious harm to European producers. This duality between business opportunity and sectoral protection requires entrepreneurs to integrate a political and regulatory management dimension into their expansion strategy.
For business leaders and growth managers, news on the EU-Mercosur agreement represents a strategic window to be exploited, but also an imperative for vigilance. The aim is to balance the possible gains of early access to a broad market against the continuing uncertainty associated with final ratification and the technical conditions for implementation. In a context where global value chains and trade barriers are rapidly evolving, this situation illustrates how European political decisions can be powerful levers or risks for international entrepreneurial strategies.
