Swift ratification of EU-Mercosur and EU-Mexico free-trade agreements strategic necessity for competitiveness

Brussels, 3 September 2025 - The EU-Mercosur and EU-Mexico Free-Trade Agreements (FTAs) offer sizeable benefits for European vehicle makers in an increasingly unpredictable global trade environment. Swift ratification now imperative to alleviate further pressures at a critical juncture in the green transition.

At a time of intensifying global competition and increasing supply chain pressures, the EU-Mercosur Free Trade Agreement will reinforce the EU automotive industry's global competitiveness and resilience. "Free and fair global trade has underpinned the global success of a competitive European auto industry. Today, an open and rules-based trade system is more vital than ever, as we face an unprecedented storm of trade tensions, fiercer competition and a complex regulatory environment," said Sigrid de Vries, ACEA's Director General, "and the EU-Mercosur agreement is a key step toward unlocking potential of untapped markets at a time when our competitiveness needs it the most."

Every year, over 30% of vehicles produced in the EU are exported to international markets, contributing to a €100 billion trade surplus. The Mercosur deal will eliminate tariffs of up to 35% on EU-made vehicles, opening the doors to a market of around 3 million vehicles. At a time when access to other important markets is being restricted, the Mercosur FTA could lead to a threefold increase in EU-made automotive goods exports by 2040. The agreement also strengthens Europe's economic resilience by supporting diversified supply chains for critical raw materials, such as lithium, graphite, and manganese, which are essential for the green transition.

Likewise, the modernisation of the EU-Mexico FTA will also bring important benefits to the EU automotive industry by updating rule of origin requirements and by addressing Technical Barriers to Trade (TBTs) in our sector through the inclusion of a motor vehicle annex.

ACEA now urges EU decision makers to move forward swiftly with the ratification of both deals. These agreements are not just a trade opportunity - they are a strategic necessity for the European automotive industry facing unprecedented competitive challenges.

Note for editors

• You can consult our policy paper on the EU-Mercosur agreement here https://www.acea.auto/files/ACEA_Policy_paper-EU_Mercosur_FTA.pdf
• You can consult our fact sheet with key data on the EU-Mercosur agreement here: https://www.acea.auto/files/ACEA_Fact-sheet_EU-Mercosur_FTA.pdf

About ACEA

• The European Automobile Manufacturers' Association (ACEA) represents the 16 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, JLR, Mercedes-Benz, Nissan, Renault Group, Stellantis, Toyota Motor Europe, Volkswagen Group, and Volvo Group.
• Visit https://www.acea.auto for more information about ACEA, and follow us on https://www.x.com/ACEA_auto or https://http://www.linkedin.com/company/ACEA/

Contact:

• Ben Kennard, Head of Communications, [email protected], +32 (0) 2 738 73 17
• Camille Lamarque, Policy Communications Officer, [email protected], +32 (0) 2 738 73 16

About the EU automobile industry

• 13.2 million Europeans work in the automotive sector
• 10.3% of all manufacturing jobs in the EU
• €383.7 billion in tax revenue for European governments
• €106.7 billion trade surplus for the European Union
• Over 7.5% of EU GDP generated by the auto industry
• €72.8 billion in R&D spending annually, 33% of EU total