The European Union (EU) and the Mercosur bloc of Brazil, Argentina, Paraguay, and Uruguay reached a renewed political agreement on December 6, 2024, but ratification of the EU-Mercosur Free Trade Agreement (FTA) is still pending. Trade data for 2024 and early 2025 show the scale of fruit, vegetable, and nut flows between the two regions.
Imports from Mercosur
In 2024, EU imports from Mercosur included around $1.78 billion in edible fruit and nuts. Bananas, citrus, avocados, and nuts make up a large share of this trade, much of it concentrated in Brazil and Argentina. Preparations of vegetables and fruits added another $2.62 billion, covering processed fruit, preserved products, and juices. Coffee, cocoa, and spices, though not fresh produce, also remain major food-related imports.
These imports highlight the EU's reliance on Mercosur for key horticultural products. For producers in Europe, particularly fruit and vegetable growers, the issue is competition with lower-cost imports that may not be subject to the same production standards.
Exports to Mercosur
On the export side, the EU ships selected fruit and vegetable products, such as wine, processed foods, and dairy. While wine and olive oil are expected to benefit most from reduced tariffs, horticultural exports such as processed fruit and vegetables also play a role. The FTA would expand access to South American middle-class consumers, though tariffs and consumer purchasing power remain limiting factors.
Key sensitivities
Agricultural trade, particularly in fruit and vegetable categories, remains one of the most sensitive areas in the negotiations. Farmers in EU member states such as France, Spain, and Italy have expressed concerns over cheaper imports of fresh produce from Mercosur.
Sustainability rules also play a role. Recent EU legislation on deforestation-free supply chains could restrict imports of certain fruit and nut categories unless exporters can prove compliance. For Mercosur growers, this represents both a market opportunity and a compliance challenge.
Outlook
The EU-Mercosur agreement, if ratified, would gradually reduce tariffs on fruit, vegetable, and nut trade. The immediate impact is expected in increased volumes of preserved fruit and fresh exports from Mercosur to the EU, while European horticultural exports will test consumer demand in South America. The balance of benefits will depend on tariff implementation, sustainability verification, and how European farmers respond to competitive pressure.
Source: TradeImeX