- Country or region
- Mercosur
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- Negotiations and agreements
- EU exporter
- Czechia
The EU-Mercosur Partnership Agreement means that:
- Czech firms and small businesses will find it much easier to do business in Mercosur countries
- Czech companies can offer services more easily and more cheaply
- Czech producers (of industrial and food products) and farmers can export more
- Czech delicacies will sell more and at premium prices
Trade is important for Czechia's economy
- Over 878,000 Czech jobs are supported by Czech and EU exports to the world*
- That is 1 out of 6 jobs
Czechia and Mercosur have a close trade relationship
- Total trade between Czechia and Mercosur: €756 million**
Lower to zero tariffs, more and cheaper exports
The agreement will eliminate tariffs on 91% of all products, benefitting virtually all Czech exports.
| Sector | Export value (2024) | Current tariffs | Future tariffs |
| Machinery and electrical equipment | €243 million | 20% | Tariffs will be phased out for most products |
| Transport equipment | €63 million | 35% | Tariffs will be phased out for most products |
| Optical, medical-surgical, measuring and photographic instruments | €38 million | 18% | 0% |
| Plastics and rubber products | €41 million | 18% | Tariffs will be phased out for most products |
| Chemicals and pharmaceuticals | €26 million | 14% | Tariffs will be phased out for most products |
*Includes Czech jobs supported by exports to countries outside the EU and jobs linked to exports from other EU countries to the world.
**Trade in goods (2024) and services (2023).
New opportunities for Czech farmers
Currently, agri-food products represent only 5% of the EU’s total exports to Mercosur, due to prohibitive tariffs and other restrictions currently in place in Mercosur countries.
As of now, Mercosur tariffs of up to 55% on EU agri-food products essentially close the market for EU products.
The EU-Mercosur deal will remove these tariffs, helping Czech farmers increase their exports to this region.
Czech agri-food exports to Mercosur in numbers:
| Export value (2024) | Current tariffs | Future tariffs |
| €4.5 million | 27-55% | Substantially reduced, 0% on some products |
Protecting distinctive Czech food and drink products
The EU-Mercosur deal will protect 344 EU food and drink products from imitation in Mercosur countries. Such protection helps make these products more distinct. This will help to sell more Czech products and at more premium prices, as the selling price of products protected by a Geographical Indication is between 2 and 3 times higher than that of regular products.
The EU-Mercosur agreement will protect 3 Czech Geographical Indications (GIs):
- České pivo (beer),
- Českobudějovické pivo (beer),
- Žatecký chmel (hops)
Supporting Czech farmers in case of market disturbances
Important measures will be in place to protect the interests of Czech farmers.
A maximum limit (quota) will be put on the amount of agri-food products imported from Mercosur that benefit from lower tariffs:
- 99,000 tonnes for beef: this corresponds to 1.5% of total EU production;
- 25,000 tonnes of pigmeat: 0.1% of total EU production, and;
- 180,000 tonnes for poultry: 1.3% of total EU production per year.
The deal includes a safeguard clause to protect EU farmers against any sudden increase in imports.
This is the first time that such a measure is included in an EU trade agreement, even for products already subject to a quota.
In addition, the Commission stands ready to promptly and strongly assist farmers in the unlikely event of significant market disturbance linked to the agreement.
High EU standards protecting EU citizens will in no way be compromised: all Mercosur products must comply with the EU’s strict food safety regulations.
Strong sustainability commitments apply equally to producers on both sides.
Easier and cheaper ways to provide services in Mercosur
Czechia and the Mercosur countries export many services to each other.
Czech exports of services to Mercosur are worth €66 million a year.
In 2023, the main exports of services consisted of:
- Telecommunications: €23 million
- Tourism: €21.8 million
- Transport: €11.7 million
The EU-Mercosur agreement will further open the Mercosur services market in sectors such as:
- Financial
- Postal & courier
- Telecommunications
- Transport
- Digital trade
- Environmental
Helping Czechia's small businesses export more to Mercosur
83% of all Czech exporters are small companies. These companies often find it difficult to export outside the EU, as it comes with extra costs and administrative procedures.
The EU-Mercosur deal will change that by offering more opportunities for small businesses. It will:
- Reduce costs by eliminating tariffs and by simplifying customs procedures
- Alleviate the administrative burden by making it easier to certify products for local sale
- Offer a better chance to bid for public contracts by improving access to information
- Provide extra help through dedicated Small Business Coordinators
- Open new possibilities through easily accessible online information about doing business in Mercosur countries