{"id":41069,"date":"2025-09-08T21:55:44","date_gmt":"2025-09-08T19:55:44","guid":{"rendered":"https:\/\/www.vinexposium.com\/?p=41069"},"modified":"2026-01-10T22:32:38","modified_gmt":"2026-01-10T21:32:38","slug":"eu-mercosur-agreement-a-strategic-opportunity-europe-cant-afford-to-miss","status":"publish","type":"post","link":"https:\/\/www.vinexposium.com\/en\/actus\/industry\/eu-mercosur-agreement-a-strategic-opportunity-europe-cant-afford-to-miss\/","title":{"rendered":"EU-Mercosur agreement: a strategic opportunity Europe can\u2019t afford to miss"},"content":{"rendered":"

After 25 years of negotiations, the EU-Mercosur agreement<\/strong> stands as one of the most ambitious trade deals ever concluded by the European Union. Its significance goes far beyond tariff reduction. For the spirits sector \u2014 a flagship of European agri-food exports \u2014 it offers a critical opportunity to expand market access, strengthen protection of geographical indications and foster deeper economic cooperation with four dynamic South American partners: Brazil, Argentina, Paraguay and Uruguay.<\/strong><\/p>\n

Yet the long-anticipated signature of the EU-Mercosur trade agreement has been postponed again. For a sector that thrives on openness and global trade, this delay is not just a missed opportunity, it\u2019s a growing risk in an increasingly unstable geopolitical landscape.<\/p>\n

More than 60% of all EU spirits exports go to third countries \u2014 over two-thirds of which are protected by geographical indications. These exports support thousands of jobs in Europe\u2019s rural areas: one job in the spirits sector supports six in upstream sectors, such as farming.<\/p>\n

Today, our trade is heavily concentrated: over 60% of exports go to just three markets: the United States, China and the United Kingdom<\/strong>. At least two have become increasingly unpredictable in recent years.<\/p>\n

\"Shelves \u00a9Imago via Zuma Press<\/p>\n

A vital step toward market diversification and new growth opportunities<\/span><\/strong><\/h2>\n

Diversifying export markets is essential to the long-term resilience of our sector. But companies can only do so much on their own. The Mercosur region, with a population of 280 million and a combined GDP of nearly $3 trillion, holds strong potential for EU spirits \u2014 not as a replacement for the U.S. and China but as a valuable complement. Yet current barriers (especially tariffs of up to 35% in Argentina for EU whiskies) are holding us back.<\/p>\n

Brazil, the heavyweight of the Mercosur bloc, is already showing interest in imported spirits. With 11% of its market made up of foreign products, the EU has a foothold but there\u2019s much more room to grow.<\/p>\n

Once ratified, the EU-Mercosur agreement will eliminate all tariffs on EU spirits (currently 18% in Brazil, Paraguay and Uruguay, and 20 to 35% in Argentina) within a short transition period (most within four years). This will dramatically improve the competitiveness of European products in the region. For categories such as Irish whiskey, French and Italian liqueurs, and Swedish or Polish vodka, this will be a game-changer. And with the right support, it could pave the way for growth in other categories, such as gin or brandy, and for producers from across the EU.<\/p>\n

But the benefits go beyond tariffs. The agreement also includes a dedicated annex for wine and spirits, which addresses long-standing non-tariff barriers and lays the groundwork for regulatory cooperation \u2014 vital for reducing unnecessary compliance costs and ensuring a level playing field. Moreover, EU exporters will be able to continue making use of regional hubs under the rules of origin agreement, offering added flexibility and logistical efficiency for companies operating across Latin America.<\/p>\n

Protecting geographical indications and sustainability<\/span><\/strong><\/h2>\n

The agreement will also secure recognition and protection for 350 European Geographical Indications (GIs), including flagship spirits such as Irish Whiskey, Polish Vodka and Swedish Vodka. It prohibits the misuse of protected names and misleading imagery, even in cases involving pre-existing trademarks. While a few GIs, like Cognac and Grappa, will only benefit from phased-in protection, the overall framework marks a major improvement over the status quo. The agreement goes both ways and will protect several spirits GIs from the Mercosur region, not least Cacha\u00e7a, and countless wine GIs.<\/p>\n

The agreement will also bind both sides to the Paris Agreement, support the implementation of key environmental commitments, and provide a platform to address sustainability challenges. Commitments on workers\u2019 rights and environmental protection will be enforceable through a dispute settlement mechanism involving civil society and international bodies, whose reports must be public.<\/p>\n

It will not weaken EU food safety standards; the EU retains the right to set strict controls on food imports, including residue levels and food safety standards. Both sides also commit to scientific cooperation on food safety, animal welfare, antimicrobial resistance, and to combat illegal logging and promote sustainable forest management.<\/p>\n

A call to action<\/span><\/strong><\/h2>\n

Trade agreements are not only about access; they are about timing. Being first matters. This agreement offers the EU a first-mover advantage that will not last forever. Already, European Free Trade Association (EFTA) countries<\/strong> are following fast in the EU\u2019s footsteps, with the announcement of the conclusion of EFTA-Mercosur negotiations last week. If the EU delays the signature and entry into force of the agreement further, we risk falling behind competitors who are already negotiating their own deals with Mercosur countries.<\/p>\n

Establishing brand recognition in new markets takes time. Ensuring the agreement can enter into force already this year would give EU companies the certainty they need to invest in local partnerships, build distribution networks and reach new consumers.<\/p>\n

SpiritsEUROPE<\/strong> welcomes the political agreement between the EU and Mercosur. We urge policymakers on both sides to act swiftly so this landmark deal can enter into force as soon as possible this year. In a time of global uncertainty, ratifying the EU-Mercosur agreement would show that Europe and Mercosur remain open, outward-looking and committed to shaping a fairer, more resilient global trading system. For the EU spirits sector, it would unlock growth, support rural jobs and secure our place in a promising, untapped market.<\/p>\n

About spiritsEUROPE :<\/span><\/strong><\/h2>\n

spiritsEUROPE<\/strong> represents one of Europe’s most valuable agri-food sectors in terms of exports, as well as the interests of 31 spirits producers’ associations across 24 European countries (EU27 + Norway, the United Kingdom, and Switzerland), along with 11 major multinational companies.<\/p>\n

The organisation advocates for policies that support the competitiveness, resilience and growth of the spirits sector, emphasizing the importance of open trade, responsible consumption, and environmental sustainability.<\/p>\n

In recent years, spiritsEUROPE has engaged in initiatives such as the Memorandum of Understanding on consumer information, demonstrating a commitment to providing transparent product details to consumers on label and online. Additionally, the organisation actively participates in discussions on trade policies, aiming to foster a stable and open trade environment for spirits, to deepen regulatory cooperation with key partners and to boost market access and diversification.<\/p>\n","protected":false},"excerpt":{"rendered":"

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