Impact of the Mercosur Agreement. A flash analysis.

The European flag in front of the word “MERCOSUR”; flags of the Mercosur member states in the background

For European food retailers, the agreement means above all improved market access and new export opportunities to the Mercosur countries. Through the gradual reduction of tariffs, food producers can offer their goods at lower prices and benefit from the increasing purchasing power and a growing middle class. At the same time, competitive pressure in the EU will rise due to the easier import of agricultural and food products from South America, which necessitates adjustments and specialisation. The industry attaches great importance to high quality and sustainability standards. Their implementation in the Mercosur Agreement is critically discussed and calls for effective monitoring mechanisms and certifications.

In the current Flash Analysis Impact of the Mercosur Agreement on the European food industry,
an analyst from KfW IPEX-Bank examines the effects and potential for companies.

Author: Martina Lannert, Industries and Commerce Department of KfW IPEX-Bank

Published: March 2026