The EU and Mercosur (Argentia, Brazil, Uruguay, Paraguay) signed its long-negotiated trade agreement in January 2026.

In a tight vote, the European Parliament requested the European Court of Justice to rule on whether the free trade agreement between the EU and Mercosur can be applied. However, the EU Commission confirmed at the end of February that the agreement will be provisionally applied in the meantime. The announcement comes after Uruguay and Argentina ratified the agreement in their respective parliaments. Paraguay and Brazil are expected to follow suit.

For the European recreational boating industry , it is very good news. For Mercosur-origin recreational boats entering the EU, tariffs are eliminated immediately on entry into force of the agreement but are already at very low rates. Current Mercosur tariffs for recreational boats are high, especially in Brazil and Argentina that offer potentially interesting markets. Tariffs, currently at 20% or up to 35%, will be reduced over a 10-15 year timeline to 0% for recreational boats.

EBI is continuing to analyse the trade agreement to provide a comprehensive overview to members .