Mercosur‑EU trade pact drives record Argentine agro‑industrial exports

An interim trade agreement between Mercosur and the European Union entered into force on 1 May 2026, creating one of the world’s largest free‑trade zones that groups 31 countries and represents roughly 20 % of global GDP. The pact eliminates tariffs on all industrial goods and on 82 % of agricultural products, with quota arrangements for the remainder.

The agreement coincides with a surge in Argentine regional exports, which reached a historic $11.313 billion in 2025. The EU absorbed 20.3 % of those shipments, becoming the second‑largest market for the region and accounting for 9.3 % of Argentina’s total exports. High‑share products include peanuts (57.9 % to the EU), tobacco (49.9 %), lemons (45.7 %) and other citrus. In the dairy sector, EU‑Mercosur and related bilateral accords introduce gradual contingents from 1 May, with modest price effects but clear benefits for European exporters such as France, which has leveraged the single market to increase dairy sales.