EU: agreement between EU and Mercosur to impact the biofuels sector

On December 6, 2024, the European Union (EU) and Mercosur - comprising Brazil, Argentina, Paraguay, Uruguay and pending member Bolivia - finalized a Partnership Agreement after over 20 years of negotiations. It creates a free trade zone with a combined population of 700 million and a GDP of nearly USD 22 trillion. While the agreement has broad economic, sustainability and geopolitical implications, its impact on the EU’s mobility and biofuels sectors could be transformative.

The EU-Mercosur deal has the potential to reshape the mobility landscape in Europe by facilitating trade in key raw materials, vehicles and technologies necessary for the transition to sustainable transport. Key highlights include: