Managing the Impact of EU-MERCOSUR Agreement on the European Member States: Opportunities and Challenges

The EU-MERCOSUR Agreement represents one of the most important interregional trade arrangements undertaken by the European Union in recent decades. Its significance arises not only from the extent of the anticipated trade liberalization but also from the political, environmental, and governance challenges it poses for EU Member States. This study examines the agreement through three interrelated dimensions: economic opportunity, distributive asymmetry, and sustainability governance. It posits that the agreement delivers considerable benefits to export-oriented manufacturing sectors, service providers, and producers of goods with protected geographical indications, while concurrently exposing vulnerable agricultural sectors to heightened competition and increasing the pressure on the EU to substantiate the credibility of its environmental and labor commitments within trade policy. The article examines the legal-institutional framework of the agreement, including its divided structure and differentiated ratification processes, assessing their impact on legitimacy and implementation. Drawing on official EU documents, European Parliament analyses, legal studies, and recent research on agriculture, sustainability, and trade enforcement, it concludes that the agreement’s effects on member states depend less on tariff reductions and more on accompanying governance mechanisms. Effective management requires targeted support for vulnerable sectors, credible traceability and monitoring systems, and strengthened integration between trade policy and the EU’s broader sustainability and economic security agendas.