For years, the agreement between the European Union (EU) and Mercosur (the Southern Common Market) has been one of those topics that repeatedly appears and disappears from public debate without ever fully materializing. Always important, always complex, but rarely urgent. Today, however, its reactivation comes in a very different context than a decade ago, one in which logistics is no longer an invisible gear, but a critical factor for competitiveness.
Not a trade deal, but a logistics maturity test
The pandemic, the energy crisis, inflation, geopolitical fragmentation, and regulatory pressure have reshaped how companies look at their supply chains. In this scenario, the EU–Mercosur agreement does not arrive as an abstract promise of growth, but as a stress test for logistics structures that have been operating for years through an accumulation of decisions, not always by design.
For operations, transport, planning, or customs teams, ignoring this agreement or waiting until “everything is finalized” can be a silent way of losing competitive advantage.
What the EU–Mercosur agreement is really about
Formally, the EU–Mercosur agreement seeks to facilitate trade between Europe and four key South American countries: Brazil, Argentina, Uruguay, and Paraguay. Its core objective is the reduction of trade barriers, especially tariffs, alongside commitments on regulatory, technical, and administrative matters.
From a logistics perspective, however, the agreement should not be read as a legal document, but as a shift in the rules of the game. When market access rules change, so do decisions about where to produce, where to consolidate, from where to export, and how to structure flows.
This means that many supply chains designed for a previous context may cease to be optimal, even if they continue to function correctly from an operational standpoint.
When tariffs fall, the supply chain reorganizes
One of the most visible effects of the agreement is the gradual reduction of tariffs. Yet the real impact lies not in the percentage by which a duty is reduced, but in how this alters the landed cost (the total cost of a product delivered to its destination).
When landed cost changes, strategic decisions that companies have left unquestioned for years are reopened. Suppliers that were previously uncompetitive may become viable. Assembly centers that once made sense may lose relevance. Routes followed out of habit may no longer be the most efficient.
At this point, logistics stops being a function that merely “executes orders” and becomes one that shapes business decisions. It is no longer about moving more goods, but about moving them differently.
EU-Mercosur agreement: the creation of the world’s largest free trade area is at stake
Rules of origin: the agreement’s silent filter
One of the most decisive, and often least understood, aspects of the agreement is the rules of origin. These rules determine where a product is considered to originate and whether it qualifies for tariff preferences.
In global supply chains, where a product may be designed in one country, manufactured in several others, and assembled elsewhere, origin is no longer obvious. Many companies will discover that even if the agreement exists, their products do not automatically qualify for its benefits.
Key factors come into play here:
- The Bill of Materials (BOM) and the actual weight of each component
- Transformation processes that add sufficient value to confer origin
- The ability to prove that origin consistently and documentarily
This analysis often reveals an uncomfortable reality: supply chains are far more fragile or dependent on third countries than previously assumed. The agreement thus acts as a catalyst, forcing companies to review inherited decisions and, in many cases, rethink the entire architecture of their value chain.
Tariff classification: small mistakes, big consequences
Another critical issue is tariff classification, based on HS (Harmonized System) codes. In many organizations, these codes were assigned years ago and have remained unchanged simply because they did not cause visible problems.
In the context of a trade agreement, this inertia becomes risky. Incorrect classification can mean failing to apply a tariff preference, triggering additional inspections, or causing border delays. What used to be an administrative detail becomes a factor with a direct impact on costs, timelines, and service reliability.
In this scenario, logistics must work much more closely with customs, procurement, and legal teams, breaking down silos that have historically slowed decision-making.
Flows, ports, and capacity: more volume does not mean less complexity
If the EU–Mercosur agreement is effectively implemented, an increase in maritime traffic between Europe and South America, especially along the Atlantic axis, is a reasonable expectation. But more volume does not necessarily mean greater efficiency.
Increased flows often bring new tensions: port congestion, pressure on container availability, tariff volatility, and greater competition for capacity during peak periods. In this context, logistics planning shifts from reactive to proactive.
Decisions such as diversifying ports of entry, strategically contracting capacity, and intelligently using intermodal solutions within Europe gain importance. Logistics can no longer afford improvisation.
Mercosur: How Europe aims to reposition its trade in the Trump era | DW News –
Customs and controls: the bottleneck that does not disappear
One of the most common mistakes when discussing trade agreements is assuming that everything becomes simpler. In practice, tariff reductions do not eliminate customs controls and, in some cases, may even intensify them.
Politically, sanitary, or environmentally sensitive products may be subject to higher levels of scrutiny. This results in more variable lead times (total transit times) and greater documentary requirements.
In this context, the differentiating factor is not only the logistics operator, but the maturity of internal processes. Clear SLAs (Service Level Agreements), interdepartmental coordination, and high-quality information become critical to avoid bottlenecks.
e-Guide: Addressing Root Causes of Logistics Bottlenecks https://www.flexport.com/logistics/eguide-logistics-bottlenecks/
An agreement that separates mature supply chains from fragile ones
The EU–Mercosur agreement will not transform logistics overnight. There will be no immediate “before and after”. But it will expose which companies have supply chains designed with intent and which ones operate solely through accumulated patches.
Organizations that see it merely as an announcement will wait until everything is finalized before reacting. Those that understand its real impact will start earlier, reviewing data, simulating scenarios, and making informed decisions even amid uncertainty.
Because, ultimately, this agreement is not about signing papers, but about accepting that logistics can no longer be limited to executing decisions made elsewhere.
Those who want to adapt to the new reality must stop waiting for external certainties and start reviewing their supply chains today, with data, judgment, and decision-making capability.
