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

The EU-Mercosur Partnership Agreement means that:

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

Trade is important for Hungary’s economy

• 805,000 Hungarian jobs are supported by Hungarian and EU exports to the world*
• That is 1 out of 6 jobs

Hungary and Mercosur have a close trade relationship

• Total trade between Hungary and Mercosur: €664 million**
• That is 28% of Hungary’s total non-EU exports

Lower to zero tariffs, more and cheaper exports

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

*Includes Hungarian 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 Hungarian 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 Hungarian farmers increase their exports to this region. 

Hungarian agri-food exports to Mercosur in numbers:

Protecting distinctive Hungarian 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 Hungarian 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 4 Hungarian Geographical Indications (GIs): 

• Szegedi szalámi; Szegedi téliszalámi (meat product)
• Tokaj / Tokaji (wine)
• Pálinka (spirit drinks)
• Törkölypálinka (spirit drinks)
   

Supporting Hungarian farmers in case of market disturbances

Important measures will be in place to protect the interests of Hungarian 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 is 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

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

Hungarian exports of services to Mercosur are worth €62.2 million a year.

In 2023, the main exports of services consisted of: 

• Telecommunications: €24.5 million
• Tourism: €17.2 million
• Repair services: €7.8 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 Hungary’s small businesses export more to Mercosur

84% of all Hungarian 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