EU MERCOSUR readiness : short check of the protocol of origin
The European Commission adopted, on 3 September 2025, the proposals for Council decisions on the signature and conclusion of two parallel legal instruments:
- the EU-Mercosur Partnership Agreement (EMPA). will have to be ratified by all EU Member States before entering into force. However, the Commission is proposing to provisionally apply its provisions on political and cooperation matters.
- the interim Trade Agreement (iTA) which will be replaced by EMPA.
This free trade agreement aims to:
- promote the trade and the business between the two groups of countries;
- increase sustainable development and worker’s rights, fighting climate change, ensuring environmental protection.
The countries involved are: Argentina, Brazil, Uruguay and Paraguay for MERCOSUR and Portugal, Spain, France, Italy, Germany, Netherlands, Belgium, Luxemburg, Danmark, Poland, Latvia, Estonia, Lithuania, Ireland, Slovenia, Croatia, Austria, Slovakia, Chech Republic, Hungary, Sweden, Finland, Malta, Cyprus, Greece Romania, Bulgaria.
It is interesting to recall the press release of European Commision “Commission proposes Mercosur and Mexico agreements for adoption” published on 3 September 2025 for which: “ “Our agreements with Mercosur and Mexico are important milestones for the EU’s economic future. We are continuing to diversify our trade, foster new partnerships and create new business opportunities. EU businesses and the EU agri-food sector will immediately reap the benefits of lower tariffs and lower costs, contributing to economic growth and job creation. The EU is already the world’s biggest trading block, and these agreements will cement this position.” Unprecedented EU export and investment opportunities to Mercosur . The deal with Argentina, Brazil, Paraguay and Uruguay (EU-Mercosur Partnership Agreement) will create the world’s biggest free trade zone, covering a market of over 700 million consumers. EU firms will enjoy first-mover advantage, benefitting from lower tariffs in a region where most other countries face high tariffs and other barriers to trade. It is estimated the agreement can increase EU annual exports to Mercosur by up to 39% (€49 billion) supporting more than 440,000 jobs across Europe. It will reduce often prohibitive Mercosur duties for EU exports, including on key industrial products, such as cars (currently 35%), machinery (14-20%), and pharmaceuticals (up to 14%). The agreement will make it easier for EU companies to invest in key supply chains, including for critical raw materials and related goods, all with a high level of environmental and labour protection”.
From a customs operational standpoint, the text of the protocol of origin provides the following keypoints:
Goods: products wholly obtained; products obtained in the European Union or MERCOSUR exclusively from originating materials; products obtained in the European Union or MERCOSUR incorporating non-originating materials, provided that they have fulfilled the conditions set out in Annex 3-B. As always, the accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle which are customary for that product and included in the price thereof or which are not separately invoiced shall be regarded as one product with the piece of equipment, machine, apparatus or vehicle in question
Priciple of territoriality of the goods: the status of originating product is valid if the goods are without interruption in the European Union or MERCOSUR territories. If the goods exit and then return lose the status of originating goods unless it can be demonstrated to the satisfaction of the customs authorities that the goods returned:
(a) are the same as those exported; and
(b) have not undergone any operation beyond that necessary to preserve them in good condition
while in that third country or while being exported
accounting segregation: the general rule requires that if originating and non-originating fungible materials are used in the manufacture of a product, those materials shall be physically segregated, according to their origin, during storage. But, it is not required if the economic operator adopted an accounting management of the stocks of goods employed in the manufcature.
Preferential treatment: the preferential treatment is granted to the goods which comply with the rules of the free trade agreement between the EU and the MERCOSUR. The preferential treatment needs:
- compliance of the goods with the rules of origin;
- statement of origin made according to the the form and guidelines of the protocol of origin and to the European and MERCOSUR regulations. The statement of origin can be audited by the competent customs authorities. The text should be the following one: “ The exporter of the products covered by this document (exporter reference no…1) declares that, except where otherwise clearly indicated, these products are of … preferential origin”.
- The exporter making out a statement on origin shall keep, for at least 3 (three) years as of the date of making out the statement on origin, a copy of that statement on origin and of the documents. The importer shall keep that statement of origin, or a copy thereof if the original is held by the customs authority or competent governmental authority, for at least 3 (three) years as of the date of importation of the products to which that statement on origin refers.