European Spirits Industry Pushes for Swift Approval of EU-Mercosur Trade Deal

A major trade group representing the European spirits industry is urging policymakers to quickly ratify the EU-Mercosur free trade agreement, which would remove tariffs of up to 35% on spirits exported from Europe to South America. The deal, which has been under negotiation for 25 years, covers the Mercosur bloc of Argentina, Brazil, Paraguay, and Uruguay. It is expected to provide significant benefits for European producers by expanding market access and protecting more than 350 geographical indications for spirits such as Scotch whisky, Cognac, and Irish whiskey.

SpiritsEurope, the trade body advocating for the sector, welcomed the recent adoption of both the EU-Mercosur and EU-Mexico free trade agreements. The organization is calling on European policymakers to finalize and implement these deals without further delay. According to SpiritsEurope director general Mark Titterington, the EU-Mercosur agreement represents one of the most ambitious trade deals ever concluded by the European Union. He emphasized that every month of delay in ratification means missed opportunities for economic growth and job creation in rural communities across Europe.

The agreement with Mercosur will gradually eliminate high tariffs on spirits, which currently reach up to 35% in some key markets. It will also address non-tariff barriers and improve logistical and regulatory conditions for European exporters. In addition to tariff reductions, the deal includes provisions to protect geographical indications from both regions, ensuring that products like Champagne or Tequila are recognized and respected in each other's markets.

Brazil is a particularly important market for European spirits, accounting for an 11% share of imported spirits in that country. In 2024 alone, exports of EU spirits to Mercosur countries reached €67.7 million (about US$79 million). Mexico also remains a crucial destination for European spirits exports and is considered the largest Latin American market for these products.

The trade group argues that swift ratification of these agreements will help drive economic growth, create jobs, and strengthen trading relationships between Europe and Latin America. They believe that reducing tariffs and regulatory barriers will make it easier for European producers to compete in these growing markets while also supporting rural economies at home.

The EU-Mercosur agreement still requires final approval from member states and the European Parliament before it can enter into force. Supporters hope that this process can be completed soon so that exporters can begin to benefit from improved access to South American markets. The deal is seen as a key step in building resilient and outward-looking trading relationships at a time when global trade faces increasing challenges.