European Wine Sector Gains New Access as EU–Mercosur Trade Deal Takes Effect

The European Committee of Wine Companies (CEEV) has welcomed the European Commission’s decision to provisionally apply the EU–Mercosur Interim Trade Agreement, marking a significant development after more than 25 years of negotiations. The announcement was made in Brussels and is seen as a crucial move for the European wine sector, which has long sought improved access to South America’s Mercosur bloc—comprising Brazil, Argentina, Uruguay, and Paraguay.

The agreement comes at a time when global trade faces increasing uncertainty. For EU wine exporters, the decision brings much-needed predictability and opens new opportunities to diversify trade with a region where European wines are in high demand but have faced persistent barriers. Brazil, in particular, stands out as a market with strong consumer interest in European wines but has maintained high tariffs and complex regulatory requirements that have limited growth.

Under the provisional application of the agreement, immediate benefits are expected for the wine sector. These include reductions in tariffs, stronger protection for Geographical Indications (GIs), and a more predictable trading environment. The CEEV states that these changes will enhance market access and competitiveness for EU wine companies, many of which are small and medium-sized enterprises (SMEs) that have struggled under the current fiscal regime.

In 2025 alone, EU wine exporters paid over €43 million in tariffs to access Mercosur markets. This financial burden has limited investment and expansion opportunities for producers across 13 EU Member States represented by the CEEV. The new agreement will gradually eliminate tariffs—currently as high as 35% in Argentina and 18% in Brazil, Paraguay, and Uruguay—allowing EU wines to compete on price with regional producers such as Chile and Argentina, who together control 58% of the Mercosur wine market.

The current state of trade shows that while EU wine exports to Mercosur reached €239 million in 2024—a decade-high figure—this represents only 1.3% of total EU wine exports. Wine accounts for just 7% of top EU agri-food exports to Mercosur, far behind products like olive oil at 18%. Most exports are concentrated in Brazil, which accounts for 86% of the value, followed by Uruguay (8%), Paraguay (3%), and Argentina (3%).

The agreement is also designed to address non-tariff barriers that have hindered trade. It introduces mutual recognition of oenological practices and harmonizes technical standards across the bloc. This means that European winemaking techniques will be accepted throughout Mercosur countries, reducing bureaucratic delays and compliance costs related to laboratory testing and certification requirements.

A key feature of the deal is the protection of intellectual property through a robust GI framework. A total of 145 EU wine GIs—including well-known names such as Champagne, Port, Prosecco, and Jerez—will receive legal protection across all Mercosur nations. This measure aims to prevent misappropriation of European heritage brands and ensure that only authentic products can use these names.

Economic modeling suggests that the agreement could boost total agri-food exports by nearly 50%, with wine among the primary beneficiaries. By removing fiscal disadvantages and regulatory obstacles, EU producers will be able to target broader consumer segments beyond niche markets in major cities.

The CEEV emphasizes that diversification is essential for an industry supporting 3 million full-time jobs and managing 3.1 million hectares of vineyards across Europe. With direct access to a combined population of 270 million consumers in Mercosur countries—212 million in Brazil alone—the agreement offers a strategic opportunity for long-term growth and resilience amid shifting global trade dynamics.

The organization also highlights its commitment to responsible growth through initiatives like “Wine in Moderation,” which promotes sustainable consumption practices alongside commercial expansion.

The CEEV urges all EU institutions and Member States to support continued progress toward full implementation of the agreement so that its benefits can be realized without further delay. For European wine producers seeking to move beyond their current 1.3% market share in Mercosur and surpass the €239 million export baseline, the removal of tariffs and enhanced GI protections represent critical tools for expanding their presence in one of the world’s most promising emerging markets.