Automotive Product Compliance | EU

EU-Mercosur Free Trade Agreement

Easier market access for European vehicles and their parts thanks to EU-Mercosur Free Trade Agreement?

European OEMs welcomed the conclusion of longstanding (almost 20 years) negotiations between the EU and the Mercosur states (Brazil, Argentina, Uruguay, Paraguay) on a free trade agreement on the 28th of June 2019. Among numerous provisions of the Agreement there is a reduction of tariffs for cars and their parts (which today are taxed respectively at 35% and 14-18%). Technical barriers to trade (TBTs) shall also be reduced: Mercosur members committed themselves to accepting some UN ECE certificates and test reports as corresponding with national requirements (details of this commitment are supposed to be published in May 2020). If implemented, this might facilitate the costly certification processes of the Mercosur members (e.g. the Brazilian INMETRO certification). However, the EU-Mercosur Trade Agreement has yet to be ratified by national parliaments of Mercosur members, European institutions (the Parliament and the European Council) and possibly also by the EU member states – a process which may take years to finalize.

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