The recent ratification of the EU-Mercosur free trade agreement marks the conclusion of over two decades of negotiations. While many sectors of French agriculture—particularly beef, pork, and poultry—have expressed strong opposition, the wine industry has adopted a more balanced perspective. Although some winemakers remain cautious, many professional organizations within the sector see the agreement as a way to expand international access and foster growth in important markets like Brazil.
For years, Brazil’s high tariffs—27% on still wines and 35% on sparkling wines—have posed significant barriers, effectively limiting access to one of South America’s largest and most dynamic markets. Recognizing this obstacle, the European Commission has consistently highlighted wine as a key beneficiary of the agreement, emphasizing the potential for reduced tariffs and improved market access. Additionally, the treaty protects 36 geographical indications (GIs) for European wines and spirits, including prestigious French names such as Champagne, Bordeaux, Burgundy, and Cognac, reinforcing Europe’s commitment to preserving quality and authenticity in a globalized market.
Despite the agreement’s promises, its tangible benefits remain uncertain under current economic conditions. Rising inflation across Mercosur countries—above 4.6% in Brazil and in triple digits in Argentina—may limit consumer spending on imported wines, challenging EU producers to secure profitable sales. To fully capitalize on the agreement, additional measures such as promotional support and export incentives may be needed to help European winegrowers establish a foothold in these markets.
Concerns about increased competition from Argentine wines in the European market appear minimal. Argentine wines are already widely available in Europe, and existing EU tariffs on imported wines have not been significant barriers. The focus, instead, is on the potential of the agreement to enable European wines to penetrate new markets, especially Brazil, where steep tariffs and technical barriers have long restricted trade.
The EU-Mercosur deal also represents an opportunity for the European wine sector to enhance sustainability and diversify its consumer base. With global trade tensions rising, particularly with major partners like China and the United States, expanding into new markets is essential. Brazil, previously hindered by high tariffs and regulatory obstacles, now offers European winemakers a chance to reach a vast and growing audience.
Strategic efforts to leverage this opportunity will require support for marketing, brand promotion, and export development, ensuring that producers can fully benefit from the improved access this agreement provides.
Before tariff reductions and market access improvements can take effect, the agreement must go through a detailed legal and linguistic review, translation into all official EU languages, and final approval by the European Council and Parliament. While the timeline for implementation remains uncertain, wine producers can begin preparing to seize the opportunities this deal presents.