Factsheet: EU-Mercosur Partnership Agreement - Opening a wealth of opportunities for people in Germany

The EU-Mercosur Partnership Agreement means that:

• German firms and small businesses will find it much easier to do business in Mercosur countries
• German companies can offer services more easily and more cheaply
• German producers (of industrial and food products) and farmers can export more
• German delicacies will sell more and at premium prices

Trade is important for Germany’s economy

• Over 6.7 million German jobs are supported by German and EU exports to the world*
• That is 1 out of 7 jobs

Germany and Mercosur have a close trade relationship

• Total trade between Germany and Mercosur: €28 billion**

Lower to zero tariffs, more and cheaper exports

The agreement will eliminate tariffs on 91% of all products, benefitting virtually all German exports.

* Includes German 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 German farmers

Currently, agri-food products represent only 5% of the EU’s total exports to Mercosur, due to the 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 German farmers increase their exports to this region.

German agri-food exports to Mercosur in numbers:

Protecting distinctive German 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 sell more German 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 regular products.

The EU-Mercosur Agreement will protect 27 German Geographical Indications (GIs):

• Allgäuer Bergkäse (Cheese)
• Allgäuer Emmentaler (Cheese)
• Bayerische Breze / Bayerische Brezn / Bayerische Brez’n / Bayerische Brezel (Bread)
• Bayerisches Bier (Beers)
• Bremer Bier (Beers)
• Dresdner Christstollen / Dresdner Stollen/ Dresdner Weihnachtsstollen (Pastry / cakes)
• Holsteiner Katenschinken / Holsteiner Schinken / Holsteiner Katenrauchschinken / Holsteiner Knochenschinken (Meat products)
• Hopfen aus der Hallertau (Hops)
• Münchener Bier (Beers)
• Nürnberger Bratwürste ; Nürnberger Rostbratwürste (Meat products)
• Nürnberger Lebkuchen (Biscuits)
• Schwäbische Maultaschen / Schwäbische Suppenmaultaschen (Pasta)
• Schwäbische Spätzle / Schwäbische Knöpfle (Pasta)
• Schwarzwälder Schinken (Meat products)
• Tettnanger Hopfen (Hops)
• Baden (Wine)
• Franken (Wine)
• Mittelrhein (Wine)
• Mosel (Wine)
• Pfalz (Wine)
• Rheingau (Wine)
• Rheinhessen (Wine)
• Württemberg (Wine)
• Genièvre / Jenever / Genever (Spirit drinks)
• Schwarzwälder (Spirit drinks)
• Kirschwasser (Spirit drinks)
• Steinhäger  (Spirit drinks)

Supporting German farmers in case of market disturbances

Important measures will be in place to protect the interests of German 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 the EU’s total 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 has been included in an EU agreement, even for products already subject to a quota.

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

Germany and the Mercosur countries export many services to each other.

German exports of services to Mercosur are worth €2.9 billion a year.

In 2023, the main exports of services consisted of: 

• Transport: €1.3 billion
• Telecommunications: €100 million
• Tourism: €83 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 Germany’s small businesses export more to Mercosur

95% of all German 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 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 them with extra help through dedicated Small Business Coordinators
• Open new possibilities through easily accessible online information about doing business in Mercosur countries