Much has been said about the EU–Mercosur Agreement, especially with the acceleration this week of its voting process in the Brazilian National Congress. The EU–Mercosur Agreement involves a highly complex legal and institutional framework, with multiple stages of approval not only in Brazil, but also in EU Member States and other Mercosur countries. Below is a brief overview of the approval and implementation process of this Agreement. Worth a look!
STRUCTURE OF THE EU–MERCOSUR AGREEMENT
The EU–Mercosur Agreement is divided into two complementary legal instruments:
1. EMPA (EU–Mercosur Partnership Agreement)
- A comprehensive agreement covering trade, environmental rules, and political and regulatory cooperation
- Requires full ratification by all Mercosur countries and EU Member States to enter into force
2. iTA (Interim Trade Agreement)
- Covers only matters under the EU’s exclusive competence (mainly trade in goods)
- May be applied provisionally while the EMPA has not yet entered into force
Reason for the split: allows immediate trade benefits in areas of EU exclusive competence, even before full ratification of the EMPA.
Source: UE – Policy Trade
EU–MERCOSUR AGREEMENT — APPROVAL STRUCTURE AND EFFECTS (Feb/2026)
Legal Framework:
- EU Treaties (TFEU)
- Brazilian Federal Constitution
Official sources: EU and Federal Government
PARTIES AND SCOPE
The Agreement involves:
- The European Union
- Mercosur countries, including Brazil
Agreements only produce effects after full domestic approval.
LEGAL NATURE
Mixed International Agreement, covering:
- Trade policy
- Environment
- Political cooperation
- Regulatory matters
Requires ratification by:
- EU institutions
- EU Member States
- Brazil
Sources:
EU Trade – Mercosul
Gov.br – Factsheet
PHASE 1: NEGOTIATION
Legal basis (EU): Article 218(3) TFEU
- Negotiations politically concluded
- Text published by the Brazilian Federal Government in Dec/2024
No legal effects
No obligations for Brazil
Phase completed
PHASE 2: COUNCIL OF THE EU
Legal basis: Article 218(5) TFEU
- EU Council authorized signature (Jan/2026)
- Possible limited provisional application
Legal limitation: does not replace the European Parliament
Phase completed
PHASE 3: FORMAL SIGNATURE
- EMPA + iTA signed on January 17, 2026
- Signature = formal authentication of the text
Does not mean entry into force
Phase completed
EUROPEAN PARLIAMENT
Legal basis: Article 218(6) TFEU
- Mandatory consent
- Without approval, the EU cannot conclude the agreement
Status (Feb/2026): opinion from the Court of Justice of the EU required
Phase ongoing
COURT OF JUSTICE OF THE EU
Legal basis: Article 218(11) TFEU
- Reviews compatibility with EU Treaties
- Prerequisite for final vote in the European Parliament
Status: ongoing proceedings
RATIFICATION IN BRAZIL
Legal basis: Articles 49(I) and 84(VIII) of the Brazilian Federal Constitution (CF)
- Submission to the National Congress for approval
- Presidential ratification
Status (Feb/2026): process initiated, not concluded
Source: Gov.br – Notícias
ENTRY INTO FORCE
For full entry into force:
- Consent of the European Parliament
- Favorable opinion of the CJEU
- Ratification by all 27 EU Member States
- Ratification by Brazil and other Mercosur countries
- Exchange of instruments
Status: no stage fully completed
Source: EU Trade – Mercosul
FOREIGN INVESTMENT IN BRAZIL
Expected impacts:
- Increase in EU foreign direct investment (FDI)
- More predictable legal environment
- Access to European value chains and higher value-added sectors
- Reduction of non-tariff barriers
Source: Gov.br – Factsheet
BRAZILIAN INVESTMENTS ABROAD
Expected impacts:
- Expansion of Brazilian companies in the EU
- Access to European services and public procurement
- Opportunities in technology, financial, and digital services
- Greater legal certainty for transatlantic operations
Source: EEAS – UE
ACRONYMS
- EU – European Union
- TFEU – Treaty on the Functioning of the European Union
- EMPA – EU–Mercosur Partnership Agreement
- iTA – Interim Trade Agreement
- CJEU – Court of Justice of the European Union
- FDI – Foreign Direct Investment
- CF – Brazilian Federal Constitution
Official sources: