Ibec welcomes the provisional application of the EU-Mercosur agreement
Ibec, the group that represents Irish business, welcomes the provisional implementation of the EU-Mercosur Interim Trade Agreement (iTA). In the current geopolitical context, the agreement marks an important step towards diversifying trade and fostering a more resilient, prosperous and competitive Europe. Ibec has consistently supported the negotiation of the Mercosur trade agreement directly and through out network of EU trade associations while acknowledging the need to address the concerns raised by the agri-food sector. As stated in our 2025 Trade and Investment paper, ‘The EU-Mercosur FTA offers significant trading opportunities in a range of industry sectors in both regions, strengthening EU resilience and reducing exposure to international uncertainties’.
Commenting on the provisional application of the agreement, Executive Director for Lobbying & Influence Fergal O’Brien noted;
“Today’s milestone concludes years of negotiations, but it represents only the provisional application of the agreement. The interim Trade Agreement (iTA) reflects the trade and investment liberalisation pillar of the partnership and will act as a standalone agreement until the full deal enters into force. This provisional phase paves the way for tariff reductions, opens access to new markets, and enables better sectoral trade. However, further work remains to achieve the full implementation of the broader EU-Mercosur Trade Agreement.’
Mercosur presents significant opportunities for Irish businesses. It will remove billions in tariffs, unlock opportunities in a market of over 273 million consumers, improve access to critical raw materials, and strengthen rules-based trade.
To maximise these benefits, the EU must act swiftly to preserve its first-mover advantage and ensure full implementation. The Irish Government should continue engaging closely with businesses, including sensitive sectors, to ensure appropriate safeguards are in place and that the agreement delivers tangible benefits for European businesses, citizens and society as a whole.”
Key highlights of the agreement:
- Tariff elimination on over 91% of EU goods after a transition period, saving EU businesses €4 billion annually and creating immediately export opportunities, particularly in pharmaceuticals and chemicals.
- Improved access to Mercosur markets, which represent a combined GDP of €2.2 trillion.
- Boost to trade in services, covering finance, telecommunications and transport, enabling EU firms to expand in Mercosur markets on equal terms with domestic and foreign competitors.
