Minister hails 'historic' South America Mercosur trade agreement
A free trade deal between the European Union and several major South American nations entered into force Friday.
Foreign Minister Margus Tsahkna (Eesti 200) said this was "a big day for sure… Markets opening, barriers falling; now it's time to turn this historic deal into real results."
A big day for sure! The EU–Mercosur agreement finally kicks in provisionally. Markets opening, barriers falling, now it's time to turn this historic deal into real results. https://t.co/uXxVwGCiQv
— Margus Tsahkna (@Tsahkna) May 1, 2026
The bloc, called the Mercosur, was established in 1991 and consists of Argentina, Brazil, Paraguay, and Uruguay. The combination forms the sixth-largest economy and has a population close to 300 million.
EU and Mercosur representatives had signed the free trade agreement at a summit held in Paraguay back in January, with Tsahkna at the time calling it "a historic milestone in global trade policy, reaffirming Europe's ability to shape its own economic and trade relations at a time when protectionism and geopolitical tensions are on the rise."
Under the terms of the free trade agreement, tariffs on industrial goods will be cut for nearly 90 percent of products, boosting the competitiveness of Estonian machinery, electrical equipment and medical devices. Estonia's service exports to Mercosur total about €58.5 million, mainly in telecommunications, transport and tourism. All of these sectors will benefit from services market liberalisation.
The agricultural market will open to Estonian producers while EU safeguard mechanisms remain in place. This balances new opportunities with protection against market disruption, proponents say.
The Estonian government decided to support the trade agreement last November, but there were still legal questions over the deal. Tsahkna said in January Estonia hopes the European Parliament would recognize this legal clarity and not delay the deal's entry into force, adding in Estonia's view, the EU–Mercosur agreements comply with EU law and include sufficient safeguards.
However, rather than green lighting the agreements, the European Parliament referred them to the EU's highest court.
The agreement's signing came at a time when tariffs had been high on the agenda, following President Donald Trump's "Liberation day" tariff announcements a year ago, and further threats of increased tariffs at the start of the year, amid the debate over Greenland's future.
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Editor: Andrew Whyte
