Infant formula, rum, and Paraguayan biodiesel are among the first products to benefit from the EU-Mercosur trade agreement, with quotas opening on May 1st 2026 and duties phasing out over a decade.
The European Commission has just published Implementing Regulation (EU) 2026/888, opening Union tariff rate quotas for three categories of products originating from Mercosur countries, including infant formula, rum, and Paraguayan biodiesel. The regulation gives effect to the EU-Mercosur Interim Agreement on Trade, which enters into provisional application on 1 May 2026. It marks the beginning of a phased market opening that the EU and the Mercosur bloc (Argentina, Brazil, Paraguay, and Uruguay) agreed after more than two decades of negotiations.
Infant formula receives an initial quota of 334 metric tonnes for the remainder of 2026. From 2027 onwards the annual quota grows progressively, reaching a maximum of 5,000 metric tonnes per year. By 2036, the in-quota duty on infant formula will fall to zero, eliminating tariffs entirely on volumes covered by the quota. Importers must prove the products originate in a Mercosur country using the origin certification documentation that the agreement requires.
Rum from Mercosur countries enters through a quota of 267,000 litres for 2026. From 2031 onwards the annual allocation expands to 2.4 million litres, and by that stage the duty within the quota will also reach a 100 percent reduction. This quota covers the full rum product category, giving distillers across the four Mercosur countries access to EU consumers under significantly reduced tariff conditions compared to the standard customs treatment that applied before the deal.
Paraguayan biodiesel is treated separately from other Mercosur biodiesel due to the specific commitments made during negotiations. Paraguay’s quota stands at 33,333 metric tonnes for 2026 and rises to 50,000 metric tonnes per year from 2027 onwards, with an immediate 100 percent duty reduction applying from day one. This represents a significant advantage for Paraguay’s biofuel sector, which now has preferential access to the EU market well ahead of the full quota ramp-up schedule that applies to other product categories.
All three quotas operate on a first-come, first-served basis. Importers must register entries through the EU’s tariff quota management system and submit valid Mercosur origin certificates with each consignment. The Commission may adjust quota volumes and other implementing details in subsequent regulations as the agreement’s first transitional years unfold. The broader EU-Mercosur agreement covers hundreds of additional product categories and tariff lines, but those will be operationalised through separate implementing acts published over the coming months.
