Agreement Glossary
Search and understand key terms, acronyms, and concepts related to the EU-MERCOSUR trade agreement.
Terms (53)
Economic and Trade Partnership Agreement (EMPA)(EMPA)
Trade component of the EU-MERCOSUR Association Agreement. EMPA covers trade in goods, services, government procurement, intellectual property and sustainable development.
Interim Trade Agreement (iTA)(iTA)
Provisional agreement allowing early application of EMPA trade provisions before full ratification of the Association Agreement by all Member States.
Harmonized System (HS)(SH/HS)
International goods classification nomenclature developed by the World Customs Organization (WCO). 6-digit HS codes are used to determine applicable customs duties.
Rules of Origin
Criteria determining the economic nationality of a product. To benefit from preferential tariffs, products must satisfy the specific rules of origin provided in the agreement annexes (sufficient processing, value added, tariff classification change).
EUR.1 Certificate of Origin(EUR.1)
Official document certifying the preferential origin of goods, issued by customs authorities. Required to benefit from tariff reductions provided by the agreements.
Sanitary and Phytosanitary Measures (SPS)(SPS)
Standards and regulations aimed at protecting human, animal and plant health. The SPS chapter of the agreements provides for mutual recognition of inspection systems and facilitation of agri-food trade.
Technical Barriers to Trade (TBT)(TBT/OTC)
Technical regulations, standards and conformity assessment procedures that may constitute trade barriers. The TBT chapter aims to reduce these barriers while preserving the right to regulate.
Geographical Indication (GI)(IG/GI)
Sign used on products with a specific geographical origin and qualities linked to that place. The EU-MERCOSUR agreement protects 350+ European GIs (Champagne, Parmigiano Reggiano, etc.) and MERCOSUR GIs.
Treaty of Asunción
Founding treaty of MERCOSUR signed on March 26, 1991 by Argentina, Brazil, Paraguay and Uruguay. It establishes the Southern Common Market and defines regional economic integration objectives.
Protocol of Ouro Preto
Additional Protocol to the Treaty of Asunción signed in 1994. It grants MERCOSUR international legal personality and defines its institutional structure (CMC, GMC, CCM, Parliament, Tribunal).
Tariff Dismantling
Process of progressive customs duty reduction provided by the agreements. Categories range from A (immediate elimination) to D15 (elimination over 15 years), with special categories for sensitive products.
Tariff Rate Quota (TRQ)(TRQ)
Limited quantity of a product that can be imported at a reduced or zero duty rate. Beyond the quota, the normal rate applies. Used notably for sensitive agricultural products (beef, poultry, sugar, ethanol).
National Treatment Principle
Obligation to treat foreign products, services and investors no less favorably than nationals. Fundamental principle of international trade law enshrined in the MERCOSUR agreements.
Most Favoured Nation Clause (MFN)(NPF/MFN)
Principle that any trade advantage granted to one country must be extended to all other WTO members. Preferential agreements like EU-MERCOSUR constitute an authorized exception (Art. XXIV GATT).
Dispute Settlement
Mechanism provided by the agreements to resolve trade disputes between the parties. Includes consultations, mediation and an ad hoc arbitral tribunal. Distinct from the WTO mechanism.
Customs Value
Basis for calculating customs duties, generally based on the transaction value (price actually paid). Governed by the WTO Customs Valuation Agreement.
Customs Declaration
Official document submitted to customs authorities detailing imported or exported goods, their tariff classification, value and origin.
Ad Valorem Duty
Customs duty calculated as a percentage of the customs value of the goods. Most common type of duty in EU-MERCOSUR agreements.
Specific Duty
Customs duty calculated based on a physical unit (weight, volume, quantity) rather than value. Example: EUR 2/kg.
Cumulation of Origin
Mechanism allowing the use of materials originating in a partner country as if they originated in the exporting country, to satisfy rules of origin.
Sufficient Processing
Degree of processing a product must undergo to acquire originating status. Defined by specific criteria (tariff heading change, value added, specific operation).
Certificate of Origin
Document certifying the country of origin of goods, required to benefit from preferential tariffs. Can be issued by authorities or self-certified by the exporter.
Tolerance (de minimis)
Rule allowing the use of a limited percentage of non-originating materials without losing the originating status of the finished product. Generally 10-15% of value.
Safeguard Clause
Mechanism allowing temporary reinstatement of customs duties in case of sudden import surges causing serious injury to domestic industry.
Drawback
Total or partial refund of customs duties paid on imported materials used in the manufacture of re-exported products. Subject to restrictions in preferential agreements.
Interim Trade Agreement (iTA)(iTA)
Trade part of the EU-MERCOSUR association agreement that can enter into provisional application without ratification by all national parliaments. Covers tariffs, rules of origin and services.
Provisional Application
Early implementation of an international agreement before its definitive ratification. Allows trade provisions to enter into force from 1 May 2026 for the EU-MERCOSUR iTA.
International Commercial Arbitration
Method of resolving commercial disputes through a private arbitral tribunal, outside state courts. The EU-MERCOSUR agreement provides a specific mechanism.
Force Majeure Clause
Contractual provision releasing parties from their obligations in case of unforeseeable and irresistible events. Essential in EU-MERCOSUR international contracts.
Applicable Law
National or international law governing a contract or dispute. In EU-MERCOSUR transactions, the choice of applicable law is crucial for legal certainty.
Corporate Due Diligence (CS3D)(CS3D)
European directive requiring large companies to identify and prevent negative impacts on human rights and the environment in their value chain, including MERCOSUR suppliers.
Technical Barrier to Trade (TBT)(OTC/TBT)
Technical regulation, standard or conformity assessment procedure that may constitute an obstacle to trade. The agreement aims to reduce these barriers through mutual recognition.
Precautionary Principle
Principle allowing restrictive measures to be adopted in the absence of complete scientific certainty about a risk. Applied by the EU in health and environmental matters.
Mutual Recognition
Agreement between parties to mutually accept conformity assessment results (tests, certifications) without repeating them. Reduces costs and delays for exporters.
SPS Equivalence
Recognition that a sanitary or phytosanitary measure of a partner country provides an equivalent level of protection, even if methods differ.
Common Market Council (CMC)(CMC)
Supreme decision-making body of MERCOSUR, composed of Foreign Affairs and Economy ministers of member states. Defines political orientations.
Common Market Group (GMC)(GMC)
Executive body of MERCOSUR responsible for implementing CMC decisions. Coordinates economic and trade policies between member states.
Permanent Review Tribunal (TPR)(TPR)
Permanent judicial body of MERCOSUR based in Asunción (Paraguay). Settles trade disputes between member states as a court of last resort.
MERCOSUR Secretariat
Permanent administrative body of MERCOSUR based in Montevideo (Uruguay). Provides technical and logistical support to decision-making bodies.
Patent
Industrial property title conferring a temporary exploitation monopoly on an invention. The agreement strengthens the protection of European patents in MERCOSUR.
Trademark
Distinctive sign (name, logo, slogan) identifying a company's products or services. Registration in each MERCOSUR country is recommended before exporting.
Test Data
Confidential data submitted to regulatory authorities for marketing authorisation (medicines, chemicals). The agreement provides for their protection for 5 to 10 years.
Association Agreement
Comprehensive agreement covering political dialogue, cooperation and trade. The EU-MERCOSUR agreement is an association agreement of which the iTA constitutes the trade pillar.
Interregional Framework Agreement (1999)
First formal agreement between the EU and MERCOSUR signed in 1999, establishing the framework for trade negotiations. Served as the basis for 25 years of negotiations.
EUDR (Deforestation Regulation)(EUDR)
Regulation (EU) 2023/1115 prohibiting the placing on the European market of products linked to deforestation (soy, beef, coffee, cocoa, wood, rubber, palm oil). Major impact on MERCOSUR imports.
CBAM (Carbon Border Adjustment Mechanism)(CBAM)
European mechanism imposing a carbon price on imports of carbon-intensive products (steel, aluminium, cement, fertilisers, electricity). Fully applicable from 2026.
Public Procurement
Purchases of goods, services and works by governments and public entities. The agreement opens MERCOSUR public procurement to European companies above certain thresholds for the first time.
Services Liberalisation
Progressive opening of services markets (telecoms, finance, transport, consulting) between the parties. The agreement provides specific commitments by sector.
Foreign Direct Investment (FDI)(IDE)
Investment made by a company in another country to establish a lasting presence (subsidiary, joint venture). The agreement facilitates European FDI in MERCOSUR.
Trade and Sustainable Development (TSD)(TSD)
Chapter of the agreement dedicated to environmental and social commitments: Paris Agreement, biodiversity, labour rights. Includes a sanction mechanism for non-compliance.
Common External Tariff (CET)(TEC)
Single customs tariff applied by MERCOSUR countries to imports from third countries. Ranges from 0% to 35% depending on the product.
Combined Nomenclature (CN)(NC)
EU 8-digit tariff classification system based on the Harmonised System (HS). Used to determine applicable customs duties.
Incoterms
International rules published by the ICC defining buyer and seller responsibilities in international transport (FOB, CIF, DDP, etc.). Essential in EU-MERCOSUR contracts.