The EU-Mercosur – an opportunity for Poland/EU from a different perspective

The Mercosur agreement is an important element of the diversification strategy. With growing trade rivalry with the US and China, Europe is gaining a firm foothold in South America, one of the world’s largest economic blocs.

It will allow the EU to reduce its dependence on Asian markets, while building a values-based partnership that includes provisions on environmental protection, labour rights and the fight against deforestation.

Access to a huge consumer market

Mercosur is more than 260 million consumers. For European companies, this means: the abolition of tariff barriers for many industrial products and services, greater opportunities to sell, among other things, cars, medicines, machinery and chemical products, simplified export procedures that will reduce transaction costs.

Estimates indicate that exports from the EU to Mercosur may increase by up to several billion euros per year.

Benefits for the Polish economy

Poland, whose share in exports to Mercosur countries today reaches only 0.4 percent, has a real chance for a significant increase in trade turnover. The greatest potential is visible in sectors that for years have been building the brand of the Polish economy abroad. The automotive and machinery industries, including manufacturers of automotive parts and agricultural and industrial machinery, can successfully increase their presence in South America. The pharmaceutical and cosmetics industries seem equally promising – the growing demand for high-quality products creates an attractive niche for Polish companies. Environmental technologies and renewable energy sources, including solutions related to recycling or water management, can also find their place. IT services and modern technologies are also invaluable – the rapid development of digitization and e-business in Mercosur countries opens up an opportunity for Polish suppliers to fill the gap in the market of innovative solutions.

An additional benefit will be the protection of geographical indications – among others, Polish Żubrówka will gain protection against counterfeits.

Importing in numbers – a limited threat

Farmers’ concerns are focused on the influx of cheap food from South America. However, the provisions of the agreement provide for limits:

• beef: maximum 1.6 per cent European production,
• poultry: about 1.2 per cent,
• sugar: 3-4 per cent,
• honey: 10 per cent (this will cover the shortage of EU production).

This means that the threat to agriculture is limited. What is more, as many as 91 percent of European food products in Mercosur countries are now subject to high tariffs. The abolition of these barriers opens up an opportunity for greater exports of Polish processed food and premium products.

Cheaper raw materials and semi-finished products

The agreement will facilitate the  import of certain agricultural and industrial raw materials, such as protein feed stuffs or vegetable oils, which will reduce costs for the Polish food and processing industry. This will increase the competitiveness of Polish companies on the global market.

An impetus for investment and scientific cooperation

The abolition of investment barriers will be conducive to the location of European and Polish companies in South America. The agreement will also facilitate the access of employees of EU companies to the local labour market, which will help in the implementation of investments. In addition, the agreement provides for the development of research and development cooperation, which will strengthen innovative projects.

Support for industry and jobs

The largest beneficiary of the agreement will probably be the German automotive industry, but Poland – as the main supplier of its parts and components – will also benefit. This means protecting jobs in domestic plants and a chance for production stability, despite the crisis in the German economy.

The EU-Mercosur agreement should not be assessed solely in terms of the risk to farmers. Thanks to strict import limits, safeguard mechanisms and the maintenance of EU quality standards, the risks are reduced. Meanwhile, the potential benefits – from an increase in exports, to support for industry and jobs, to a strengthening of geopolitical position – could be significant.

For Poland, it is an opportunity to diversify its export directions, enter new markets and develop innovative industries. At the same time, it will be crucial to support the agricultural sectors most exposed to competition and provide them with the tools to increase their competitiveness.

The EC introduces safeguards for farmers in the Mercosur deal

On 8th October 2025, the European Commission proposed safeguard measures to protect EU farmers from the effects of an increase in imports or a decrease in the prices of agricultural products from Mercosur. In the event of a threat, it will be possible to quickly launch actions, including the temporary withdrawal of tariff preferences.

The mechanisms apply to sensitive products: beef, poultry, rice, honey, eggs, garlic, ethanol and sugar. The EC will monitor the market and report on the impact of imports on EU markets every six months.

The proposed regulation provides:• the swift opening of investigations at the request of the Member States;• the introduction of safeguard measures within 21 days;• the completion of investigations within a maximum of 4 months.

The mechanisms are intended to strike  a balance between trade benefits and the protection of European agriculture.

Sources:

• Biznes24, UMOWA Z MERCOSUR Z INNEJ PERSPEKTYWY, rozmowa z Maciej Witucki, prezydent Konfederacji Lewiatan
• Komisja Europejska, komunikat prasowy KE – „EU-Mercosur trade agreement: protective measures for EU farmers”, 08.10.2025.

Translated by IDC

JL