Mercosur trade agreements drive agricultural export growth amid quota disputes

New trade agreements involving Mercosur are impacting agricultural exports across South America. In Argentina, recent deals with the United States and the European Union have led to significant growth in several sectors. Argentine frozen beef exports to the U.S. increased by 175% in the first half of 2026, while sunflower seeds saw a 611% rise. Overall, Argentine exports reached a record $8.9 billion in July, resulting in a $2.1 billion trade surplus.

However, concerns remain regarding the distribution of export quotas within the Mercosur bloc. The Unión de Gremios de la Producción (UGP) in Paraguay has warned that unilateral EU regulations could threaten national production. The UGP is advocating for an equitable division of the 25% export quotas granted by the EU, proposing that the quota be split equally among Argentina, Brazil, Paraguay, and Uruguay. Producers argue that failing to secure a fixed percentage now could limit future export capacity as production increases.