Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**
**Brussels, 3 September 2025**
**(OR. en)**

**12441/25**

**Interinstitutional File:**

**2025/0192 (NLE)**

**COLAC 128**

**POLCOM 212**

**SERVICES 48**

**FDI 43**

**PROPOSAL**

From: Secretary-General of the European Commission, signed by Ms Martine
DEPREZ, Director

date of receipt: 3 September 2025

To: Ms Thérèse BLANCHET, Secretary-General of the Council of the
European Union

No. Cion doc.: COM(2025) 357 final

Subject: Proposal for a COUNCIL DECISION on the conclusion, on behalf of the
European Union, of the Partnership Agreement between the European
Union and its Member States, of the one part, and the Common Market
of the South, the Argentine Republic, the Federative Republic of Brazil,
the Republic of Paraguay and the Oriental Republic of Uruguay, of the
other part

Delegations will find attached document COM(2025) 357 final.

Encl.: COM(2025) 357 final

12441/25

## RELEX. 1 EN

EUROPEAN

COMMISSION

Brussels, 3.9.2025
COM(2025) 357 final

2025/0192 (NLE)

Proposal for a

**COUNCIL DECISION**

**on the conclusion, on behalf of the European Union, of the Partnership Agreement**
**between the European Union and its Member States, of the one part, and the Common**

**Market of the South, the Argentine Republic, the Federative Republic of Brazil, the**

**Republic of Paraguay and the Oriental Republic of Uruguay, of the other part**

# **EN EN**

**EXPLANATORY MEMORANDUM**

**1.** **CONTEXT** **OF** **THE** **PROPOSAL**

**•** **Reasons for and objectives of the proposal**

The attached proposal constitutes the legal instrument for authorising the conclusion of the
Partnership Agreement between the European Union and its Member States, and the Common
Market of the South, the Argentine Republic, the Federative Republic of Brazil, the Republic
of Paraguay and the Oriental Republic of Uruguay (hereinafter referred to as ‘the EUMERCOSUR Partnership Agreement’).

Relations between the European Union (‘EU’) and MERCOSUR [1] are currently based on the
Interregional Framework Cooperation Agreement between the European Community and its
Member States, and the Southern Common Market and its Party States, signed in Madrid, on
15 December 1995.

On 13 September 1999, the Council of the European Union authorised the European
Commission to open negotiations with MERCOSUR and adopted negotiating directives. The
negotiations were conducted in consultation with the Council Working Party on Latin America
and the Caribbean. The Trade Policy Committee was consulted on the trade-related parts of the
Agreement.

The negotiations took more than 25 years. The negotiation of the trade-related parts was initially
concluded in June 2019 and of the political and cooperation part, in June 2020. During 2023
and 2024, the EU and Mercosur negotiated additional elements, in particular the Annex to the
Trade and Sustainable Development Chapter, including reinforced commitments on
deforestation as well as provisions granting Mercosur more flexibility on some industrial policy
related commitments (e.g. public procurement). The EU and MERCOSUR concluded the
negotiations of the Partnership Agreement on 6 December 2024 in Montevideo, Uruguay.

The outcome is an ambitious agreement which goes well beyond the 1995 Framework
Agreement, responding to today’s global challenges. The EU-MERCOSUR Partnership
Agreement will boost strategic political and economic ties between like-minded and reliable
partners, based on shared universal values such as democracy and human rights. It is a modern
agreement which stands for open and rules-based trade, countering protectionism and
promoting sustainable development. It will open up opportunities for major mutual gains
through strengthened cooperation. It will be an important step towards strengthening ties
between partners of choice and enhancing the role of the European Union in South America.

The negotiated texts of the political and cooperation parts of the EU-MERCOSUR Partnership
Agreement were sent to Council Working Group on Latin America in April 2025. The

1 The Common Market of the South (MERCOSUR for its Spanish initials) is a regional integration process,
initially established by Argentina, Brazil, Paraguay and Uruguay, and subsequently joined by Venezuela
(currently suspended) and Bolivia (in accession process). Only Argentina, Brazil, Paraguay and Uruguay
are parties to the EU-MERCOSUR Partnership Agreement.

# EN 1 EN

negotiated texts of the trade-related parts of the draft agreement were published by the
Commission in August 2019 and in December 2024.

The negotiated outcome consists of two legal instruments:

1. the EU-MERCOSUR Partnership Agreement, including a) the Political and
Cooperation pillar and b) the Trade and Investment pillar; and

2. the Interim Agreement on Trade, covering trade and investment liberalisation.

Both the EU-MERCOSUR Partnership Agreement and the Interim Agreement on Trade were
signed at the same time. Both agreements will enter into force on the first day of the month
following the date on which the Parties have notified each other in writing of the completion of
their respective internal procedures required for this purpose. The Interim Agreement on Trade
will expire and be replaced by the EU-MERCOSUR Partnership Agreement upon entry into
force of the latter, following ratification by all parties. The present Council decision on
conclusion represents, together with the consent of the European Parliament, the expression of
the consent to be bound by the European Union.

**•** **Consistency with existing policy provisions in the policy area**

The EU-MERCOSUR Partnership Agreement provides a comprehensive legal framework for
EU-MERCOSUR relations and replaces the current Interregional Framework Cooperation
Agreement between the European Community and its Member States, and the Southern
Common Market and its Party States, signed in Madrid on 15 December 1995.

The EU-MERCOSUR Partnership Agreement is fully in line with the overall EU vision for its
partnership with Latin America and the Caribbean, as outlined in the Joint Communication to
the European Parliament and the Council of the European Union on a New Agenda for Relations
between the EU and Latin America and the Caribbean, adopted on 7 June 2023. The EU
presence in Latin America and the Caribbean through four outermost regions (French Guiana,
Guadeloupe, Martinique and Saint Martin), as well as Overseas Countries and Territories, is an
asset to this partnership.

In addition, the Trade and Investment Part of the EU-MERCOSUR Partnership Agreement is
in line with the “Trade Policy Review – An Open, Sustainable and Assertive Trade Policy”, of
February 2021, which anchors trade and investment policy to European and universal standards
and values, alongside core economic interests, putting a greater emphasis on sustainable
development, human rights, tax evasion, consumer protection, and responsible and fair trade.

**•** **Consistency with other Union policies**

The EU-MERCOSUR Partnership Agreement is fully consistent with European Union policies
and will not require the EU to amend its rules, regulations or standards in any regulated area,
e.g. technical rules and product standards, sanitary or phytosanitary rules, regulations on food
and safety, health and safety standards, rules on genetically modified organisms, environmental
protection or consumer protection.

The EU-MERCOSUR Partnership Agreement includes a chapter on Trade and Sustainable
Development, which links the Agreement to overall objectives of sustainable development and
specific objectives in the areas of labour, environment, and climate change.

# EN 2 EN

Furthermore, the EU-MERCOSUR Partnership Agreement fully safeguards public services and
ensures that governments’ right to regulate in the public interest is fully preserved and
constitutes a basic underlying principle thereof.

**2.** **LEGAL** **BASIS,** **SUBSIDIARITY** **AND** **PROPORTIONALITY**

**•** **Legal basis**

The EU-MERCOSUR Partnership Agreement covers areas which fall within the scope of the
common commercial policy, transport, development cooperation and of the economic, financial
and technical cooperation with third countries. The legal basis of the proposed decision should
therefore be Articles 91, 100(2), 207, 209 and 212 of the Treaty on the Functioning of the
European Union (TFEU).

Article 218(6) TFEU provides that the Council shall adopt a decision concluding the agreement,
following the European Parliament’s consent.

Article 218(7) TFEU enables the Council to authorise the Commission, to approve on the
Union's behalf, modifications to the agreement, subject, as the case may be, to specific
conditions the Council may attach to such authorisation.

Article 218(8) TFEU provides that the Council is to act by qualified majority except for the
circumstances listed in the second subparagraph of Article 218(8) TFEU where the Council is
to act unanimously. Given the fact that the predominant components of the Agreement are trade
policy, transport, and development, economic, financial and technical cooperation with third
countries, the voting rule for this particular case is therefore qualified majority.

**•** **Subsidiarity (for non-exclusive competence)**

On 13 September 1999, the Council authorised the European Commission to negotiate with
MERCOSUR. Therefore, action at the Union level was considered to be more effective than
action at the national level.

Those parts of the EU-MERCOSUR Partnership Agreement that fall under EU competence
shared with Member States, cover policy areas and elements that lend themselves to external
action at the level of the Union. In the policy areas where regulatory action has been undertaken
at the level of the Union, external exercise by the Union of the competence covered is inevitable
(Article 3(2) TFEU). Additionally, in order to achieve meaningful cooperation and in order to
be in a stronger negotiating position vis-à-vis MERCOSUR, it has been judged that action at
the level of the Union was more desirable than action at the level of the individual Member

States. Therefore, action at the Union level was considered to be more effective than action at
the national level.

As regards the Trade and Investment part of the EU-MERCOSUR Partnership Agreement, the
common commercial policy, in accordance with Article 3(1) of the TFEU, is an exclusive Union
competence.

**•** **Proportionality**

This initiative pursues directly the objectives of the external action of the Union and contributes
to the political priority of ‘EU as a stronger global actor’. It is in line with the orientations of
the EU Global Strategy, namely to engage with other countries and to revamp its external

# EN 3 EN

partnerships in a responsible way, in order to attain the EU’s external objectives. It contributes
to the trade and development objectives of the EU. The proposal is in line with the EU Green
Deal.

Negotiations for the EU-MERCOSUR Partnership Agreement were carried out in accordance
with the negotiating directives set out by the Council. The outcome of negotiations does not go
beyond what is necessary to achieve the policy objectives set out in the negotiating directives.

**•** **Choice of the instrument**

This proposal for a Council decision is submitted in accordance with paragraph 6 of Article 218
TFEU, which envisages the adoption by the Council of a decision authorising the conclusion
of the agreement. There exists no other legal instrument that could be used in order to achieve
the objective expressed in this proposal.

**3.** **RESULTS** **OF** **EX-POST** **EVALUATIONS,** **STAKEHOLDER**
**CONSULTATIONS** **AND** **IMPACT** **ASSESSMENTS**

**•** **Stakeholder consultations**

During the negotiations with MERCOSUR, a Sustainability Impact Assessment was
commissioned from an external contractor to study the potential economic, social and
environmental impact of the trade part of the agreement. That impact assessment fed into the
negotiations and informed the negotiators and Commission services. The final report was
published on 29 March 2021.

In preparing that impact assessment, the contractor consulted widely internal and external
experts, organised public consultations and workshops, conducted online questionnaires and
held bilateral meetings and interviews with civil society both in Europe and in MERCOSUR.
Those consultations provided a valuable and effective platform for the involvement of key
stakeholders and civil society, which participated in significant numbers.

Negotiations were carried out in consultation with the Council Working Party on Latin America
and the Caribbean for the political and cooperation aspects of this Agreement, and in
consultation with the Trade Policy Committee, for the trade aspects of this Agreement, as the
special committee designated by the Council in accordance with Article 218(4) TFEU. The
European Parliament was also regularly informed through the Committee on Foreign Affairs
(AFET), the Committee on International Trade (INTA) and the MERCOSUR Monitoring
Group. The texts resulting from the negotiations were circulated throughout the negotiation
process to both institutions. The Commission also organised number of meetings and contacts
with civil society (Civil Society Dialogues) to discuss progress and negotiating positions
throughout the negotiations.

**•** **Collection and use of expertise**

The “ _Sustainability Impact Assessment in Support of the Association Agreement Negotiations_
_between the European Union and MERCOSUR_ ” was carried out by the external contractor
London School of Economics Enterprise. It provides an examination of the potential economic,
social, human rights and environmental impact of the trade agreement.

# EN 4 EN

The “Economic Assessment of Negotiated Outcome” was carried out by Commission services
following the conclusion of the negotiations and reflecting their outcome.

**•** **Impact assessment**

The Sustainability Impact Assessment consists of two complementary components. First, a
robust analysis of the economic, social, human rights and environmental impacts, that the trade
agreement under negotiation could have in the EU, in MERCOSUR countries and in other
relevant countries. Second, a broad consultation process involving stakeholders both in the EU
and in MERCOSUR countries, providing opportunities for information gathering and sharing,
consultation and dissemination of the results. The Impact Assessment provides valuable input
to the process of designing possible flanking and mitigating measures, including via proposals
in the study.

The report employs the dynamic version of the GTAP Model to study the impacts of two
scenarios, one conservative and one more ambitious, with respect to the outcome of the
negotiations in terms of tariff and non-tariff measures reductions by both parties. In the
conservative scenario, GDP in the EU expands by EUR 10.9 billion (0.1%) and in MERCOSUR
by EUR 7.4 billion (0.3%) by 2032, in comparison to the modelling baseline without the FTA.
In the ambitious scenario, GDP in the EU expands by EUR 15 billion and in MERCOSUR by
EUR 11.4 billion.

The Economic Assessment of Negotiated Outcome assesses the economic impact of the actual
outcome of the negotiations. It is not based on assumptions regarding the expected outcome of
the agreement, contrary to the Impact Assessment. The latter assessed the impact of two
scenarios, one conservative and one ambitious, with respect to the outcome of the negotiations
in terms of reductions of barriers to trade through tariff and non-tariff measures. The former
estimates the economic impact based on the actual tariff and non-tariff measures concessions.
It also takes into account the fact that the UK is no longer in the EU. This explains the difference
in the estimated impact of the agreement in the economic assessment compared to the Impact
Assessment. Furthermore, the economic assessment analysis is updated to include the most
recent developments in the EU’s trade policy.

**•** **Regulatory fitness and simplification (REFIT)**

The EU-MERCOSUR Partnership Agreement is not subject to REFIT procedures. It
nevertheless contains a framework for simplified trade and investment procedures, reduced
export and investment related costs and will therefore increase trade and investment
opportunities for small and medium-sized enterprises in both markets. Among the expected
benefits are increased transparency, less burdensome technical rules, compliance requirements,
customs procedures and rules of origin, enhanced protection of intellectual property rights and
geographical indications, better access to government procurement tenders, as well as a special
chapter to help SMEs use the opportunities offered under the Agreement.

**•** **Fundamental rights**

The proposal does not affect the protection of fundamental rights in the Union. On the contrary,
the Parties undertake to cooperate on the promotion and protection of human rights, including
with regard to the ratification and implementation of international human rights instruments,
and to strengthen democratic principles and the rule of law, promoting gender equality and
combatting discrimination in all its forms.

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**4.** **BUDGETARY** **IMPLICATIONS**

The trade part of the Agreement will have a financial impact on the EU budget on the side of
the revenues. It will lead to an estimated loss of duties of EUR 330 million at the entry into
force of the Agreement. Once the Interim Trade Agreement is fully implemented in the EU
(after 15 years from its entry into force) the yearly loss of duties is estimated to reach EUR 1
billion. This estimation is based on a projection of the evolution of trade for the next 15 years
without any agreement. Indirect positive impacts are expected in terms of an increase in
resources linked to value added tax and gross national income.

**5.** **OTHER** **ELEMENTS**

**•** **Implementation plans and monitoring, evaluation and reporting arrangements**

The EU-MERCOSUR Partnership Agreement includes institutional provisions that establish
joint bodies to continuously monitor its implementation, operation and impact.

The institutional structure of the EU-MERCOSUR Partnership Agreement is composed of a
Joint Council, a Joint Committee and Sub-Committees and other bodies. The Joint Council will
oversee the fulfilment of the objectives of this Agreement and supervise its implementation The
Joint Committee will assist the Joint Council in the performance of its duties and supervise the
work of all Sub-Committees and other bodies established under the EU-MERCOSUR
Partnership Agreement. When discussing trade and investment matters, the Joint Council and
the Joint Committee will meet in trade configuration. The institutional provisions of the Trade
and Investment Part of the EU-MERCOSUR Partnership Agreement establish specific
functions and tasks of the Joint Council and Joint Committee acting in trade configuration.

The Agreement establishes a Sub-Committee on International Cooperation and Development
and a number of trade and investment related Sub-Committees. Further Sub-Committees or
other bodies may be established by the Joint Council or Joint Committee to address specific
tasks or subject matters.

The EU-MERCOSUR Partnership Agreement also includes a Civil Society Forum to allow the
civil society on both sides to be heard on all the provisions in the Agreement.

**•** **Detailed explanation of the specific provisions of the proposal**

The EU-MERCOSUR Partnership Agreement creates a coherent, comprehensive, up-to-date
legally binding framework for the EU's relations with MERCOSUR. It establishes a strong
partnership, reinforces political dialogue and deepens and enhances cooperation on issues of
mutual interest. At the same time, the EU-MERCOSUR Partnership Agreement will foster trade
and investment by contributing to the expansion and diversification of economic and trade
relations.

The EU-MERCOSUR Partnership Agreement is divided into four parts. Part I (General
Principles and Institutional Framework) outlines the general principles and objectives of the
Agreement and sets up its institutional framework, as described above.

Essential elements of the Agreement are: respect for democratic principles, human rights,
fundamental freedoms and the principles of the rule of law, as well as the clause on nonproliferation of weapons of mass destruction (WMDs) and remaining a party on good faith of
the United Nations Framework Convention on Climate Changeand the Paris Agreement.

# EN 6 EN

In Part II (Political Dialogue and Cooperation), the EU and MERCOSUR undertake to deepen
dialogue and cooperate in the following areas:

        - Democratic Principles, Human Rights and the Rule of Law and International
Peace and Security

        - Justice, Freedom and Security

        - Sustainable Development

        - Social, Economic and Cultural Partnership.

The Agreement puts emphasis on a wide range of crucial issues, including environmental
protection, climate change, sustainable energy, rule of law, human and women’s rights,
responsible business conduct, labour rights and disaster risk reduction. Provisions in Part II will
allow a more coordinated and common action in new areas such as public health, state
modernisation, management of migration flows, non-proliferation of WMDs, money
laundering or financing of terrorism and cybercrime.

This will translate into a stronger partnership at global level, e.g. concerning the agenda 2030,
the action against climate change and on issues of global democratic governance and human
rights, international migration, peace and security.

Part II also contains provisions to deepen the dialogue on international cooperation and
development and to facilitate the implementation of this Agreement. The Agreement contains
a Protocol on cooperation where the Parties commit to a cooperation partnership that will
contribute to peace and prosperity, based on respect, trust, and shared values and interests,
jointly addressing challenges and seizing opportunities arising from the EU-MERCOSUR
Partnership Agreement.

Part III (Trade and Trade related matters) creates a coherent, comprehensive, up-to-date legally
binding framework for the trade relations of the EU with MERCOSUR. It will foster trade and
investment by contributing to the expansion and diversification of economic and trade relations.
Through this agreement, the EU aims to provide the best possible conditions for its operators
on the MERCOSUR market. It goes beyond existing WTO commitments in many areas, such
as trade in goods, services, government procurement, non-tariff barriers and the protection and
enforcement of intellectual property rights, including geographical indications. In all of these
areas, MERCOSUR countries agreed to significant new commitments in comparison to WTO
terms. The agreement also contains advanced provisions on trade and sustainable development,
including a strong commitment on deforestation.

The agreement satisfies the criteria of Article XXIV GATT (to eliminate duties and other
restrictive regulations of commerce with respect to substantially all trade in goods between the
parties), as well as of Article V GATS, which provides for a similar test with respect to services.

In line with the objectives set by the negotiating directives, Part III of the EU-MERCOSUR
Partnership Agreement will offer:

1. The full removal, over time, of duties on 91% of goods that EU companies export to
MERCOSUR. This will save over EUR 4 billion annually in duties. For example,
MERCOSUR countries will remove high duties on industrial products, such as cars
(35%), car parts (14 to 18%), machinery (14 to 20%), chemicals (up to 18%), clothing
(up to 35%), pharmaceuticals (up to 14%), leather shoes (up to 35%) or textiles (up to

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35%). The agreement will also progressively eliminate duties on EU food and drink
exports, such as wine (27%), chocolate (20%), spirits (20 to 35%), biscuits (16 to
18%), canned peaches (55%) or soft drinks (20-35%). The agreement will also provide
duty-free access subject to quotas for EU dairy products (currently 28% tariff), notably
for cheeses.

2. A balanced market opening by the EU, as the agreement will eliminate import duties
on 92% of MERCOSUR goods exported to the EU. Sensitive agricultural products
such as beef, sugar or poultry are only given preferential treatment in limited quantities
via carefully calibrated tariff-rate quotas.

3. For Argentina, Uruguay and Paraguay, the agreement fully dismantles, or binds at
zero, export taxes on raw materials and on industrial goods. It also reduces export taxes
on agricultural goods (Argentina), or eliminates them (Uruguay, Paraguay and Brazil).
For industrial goods, Brazil has bound at zero important raw materials needed for the
EU’s economic diversification (nickel, copper, aluminium, steel raw materials, steel,
titanium). Brazil has maintained policy space to impose export duties on certain raw
materials, in suchcases the EU has obtained preferences of at least 50% on any export
tax introduced by Brazil in the future and a ceiling of 25%.

4. A robust bilateral safeguard mechanism that allows the EU and MERCOSUR to
impose temporary measures to regulate imports in the event of an unexpected and
significant increase in imports, which causes, or threatens to cause, serious injury to
their domestic industry. These safeguards also apply to agricultural goods under the
tariff-rate quota regime or can be limited to the territory of EU outermost regions,
where relevant.

5. The highest standards for food safety, animal and plant health continue to apply to all
products, irrespectively of whether they are produced domestically or imported into
the EU. The precautionary principle applies. The agreement provides for reinforced
cooperation with the authorities of the partner countries and faster flow of information
about any potential risks through a more direct and efficient information and
notification system.

6. A comprehensive chapter on trade and sustainable development, which aims at
ensuring that trade supports environmental protection and social development. The
chapter covers issues such as sustainable management and conservation of forests,
respect for labour rights and promotion of responsible business conduct. It also
includes specific dispute settlement provisions and a dedicated review mechanism.
The chapter also includes an explicit commitment to effectively implement the Paris
Agreement on Climate Change, which constitutes an essential element of the EUMERCOSUR Partnership Agreement, and of the Interim Trade Agreement, therefore
allowing a suspension of the latter if a Party leaves the Paris Agreement or stops being
a party “in good faith”. An Annex to the Trade & Sustainable Development Chapter
contains commitments on deforestation by the Parties to take measures to stop further
deforestation as of 2030. This is the first time that Parties to a trade agreement subject
to dispute settlement take an individual legal commitment to stop deforestation. The
Agreement also offers civil society organisations an active role to overview the
implementation of the agreement, including any environmental concerns.

7. New tendering opportunities for EU bidders with MERCOSUR countries, which are
not members of the WTO Agreement on Government Procurement. This is the first
time that MERCOSUR countries will open up their government procurement markets.
EU companies will be able to tender for contracts with public authorities, such as

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central government ministries and other governmental and federal agencies, on an
equal footing with companies from MERCOSUR countries.

8. The removal of technical and regulatory trade barriers to trade in goods, in particular
by promoting the use of first-party certification and convergence through the use of
international standards adopted by ISO, IEC, ITU and Codex Alimentarius, as well as
by other international standard setting organisations, in accordance with the common
definition agreed by the EU and MERCOSUR. There is an agreement to reduce
duplicative testing in the electronics sector in low-risk areas. There will also be a
specific Motor Vehicles Annex promoting UNECE Regulations and reducing
duplicative testing in the sector.

9. A comprehensive Annex with detailed provisions to facilitate trade in wine and spirits,
covering recognition of winemaking practices, certification and labelling, in line with
the most modern free trade agreements of the EU.

10. The opening of services sectors and facilitation of trade in services between the EU
and MERCOSUR, both through local establishment and on a cross-border basis. The
agreement covers a wide range of services sectors, including business services,
financial services, telecommunications, maritime transport (for the first time
MERCOSUR is opening maritime transport within the region), postal and courier
services. It also includes commitments on establishment of enterprises, both in services
and non-services sectors. It will ensure a level-playing field between EU service
providers and their competitors in MERCOSUR. The ‘right to regulate’ in public
interest is fully preserved, at all levels of government. The agreement also contains
advanced provisions on the movement of professionals for business purposes, such as
managers or specialists that EU companies post to their subsidiaries in MERCOSUR

–
countries. There is also a substantive e-commerce chapter a novelty for the
MERCOSUR partners.

11. A high level of protection and enforcement of intellectual property rights including
detailed provisions on copyright, trade secrets and enforcement providing for
improved protection.

12. A high level of protection and enforcement for EU Geographical Indications,
comparable to that of the EU, for 344 EU names of quality food, wine and spirits
products.

13. A chapter dedicated to Small and Medium Enterprises to ensure that they fully benefit
from the opportunities offered by the EU-MERCOSUR Partnership Agreement.

14. Efficient dispute resolution mechanisms, either through panel arbitration or with the
help of a mediator. The dispute settlement chapter includes new provisions modelled
on the WTO non-violation complaint - if a party considers that a measure of the other
party nullifies or substantially impairs its benefits under the agreement, it can ask a
panel to rule on this question.

Part IV (Final Provisions) includes _inter alia_ a procedure for addressing cases of failure by a
Party to fulfil its obligations under the Agreement and provisions on entry into force and
amendments of the Agreement.

The Agreement is concluded for an indefinite period of time and, upon its entry into force,
replaces the Interim Agreement on Trade.

# EN 9 EN

2025/0192 (NLE)

Proposal for a

**COUNCIL DECISION**

**on the conclusion, on behalf of the European Union, of the Partnership Agreement**
**between the European Union and its Member States, of the one part, and the Common**

**Market of the South, the Argentine Republic, the Federative Republic of Brazil, the**

**Republic of Paraguay and the Oriental Republic of Uruguay, of the other part**

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular
Articles 91(1), 100(2), first subparagraph of Article 207(4), Article 209(2) and Article 212, in
conjunction with Article 218(6) second subparagraph, point (a) and Article 218(7), thereof,

Having regard to the proposal from the European Commission,

Having regard to the consent of the European Parliament [1],

Whereas:

(1) In accordance with Council Decision No [XX] [2], the Partnership Agreement between the
European Union and its Member States, of the one part, and the Common Market of the
South, the Argentine Republic, the Federative Republic of Brazil, the Republic of
Paraguay and the Oriental Republic of Uruguay, of the other part (‘the Agreement’) was
signed on [XX XXX 2025], subject to its conclusion at a later date and its relevant parts
have been provisionally applied from […], pending its entry into force.

(2) The Agreement should be approved on behalf of the Union.

(3) Pursuant to Article 218(7) of the Treaty on the Functioning of the European Union, it is
appropriate to authorise the Commission to approve on the Union’s behalf certain
modifications to the Agreement by a body set up by the Agreement pursuant to Article
20.26 and subparagraph (f)(ii)(iv)(xvi) of Article 9.7(1) of the Agreement.

(4) The Agreement does not, in accordance with Article 30.9 thereof, within the Union,
confer rights or impose obligations on persons, other than those created between the
Parties under public international law,

HAS ADOPTED THIS DECISION:

_Article 1_

1. The Partnership Agreement between the European Union and its Member States, of the one
part, and the Common Market of the South, the Argentine Republic, the Federative Republic

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of Brazil, the Republic of Paraguay and the Oriental Republic of Uruguay, of the other part is
hereby approved on behalf of the Union. [*]

_Article 2_

For the purposes of Article 20.26 of the Agreement, any modification or rectification of
Annexes 20-A to 20-E to the Agreement shall be approved by the Commission on behalf of the
Union, following consultation of the Trade Policy Committee.

_Article 3_

1. For the purposes of paragraph 6 of Article 2 of Annex 10-D and subparagraph (f)(ii) of Article
9.7(1) of the Agreement, any amendment to Appendix 10-D-1 of Annex 10-D to the Agreement
shall be approved by the Commission on behalf of the Union, following consultation of the
Trade Policy Committee.

2. For the purposes of paragraph 4 of Article 5 of Annex 10-D and subparagraph (f)(iv) of
Article 9.7(1) of the Agreement, any amendment to Appendix 10-D-3 of Annex 10-D to the
Agreement shall be approved by the Commission on behalf of the Union, following consultation
of the Trade Policy Committee.

_Article 4_

For the purposes of Article 21.39 and subparagraph (f)(xii) of Article 9.7(1) of the Agreement,
any amendment to Annex 21-C to the Agreement shall be approved by the Commission on
behalf of the Union, following consultation of the Trade Policy Committee.

_Article 5_

This Decision shall enter into force on the day of its adoption.

Done at Brussels,

_For the Council_

_The President_

       - The text of the Agreement is published in OJ L, XXXXX.

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