The EU-MERCOSUR Agreement: an IP Perspective

Carlos Casado

IP advisor at Latin America IP SME Helpdesk

"60,000 EU companies are exporting to Mercosur today – 30,000 of them are small and medium-sized enterprises." 

President von der Leyen on the occasion of the Mercosur leaders' meeting.

After more than two decades of negotiations, the Partnership Agreement between the European Union and the Southern Common Market (Mercosur) marks a significant step forward in trade and political relations. The agreement not only aims at economic integration through the removal of trade barriers but also promotes cooperation in key areas such as the environment, human rights, and the protection of intellectual property. In the latter area, the agreement establishes a framework to improve the mutual recognition of rights, the protection of geographical indications, and the promotion of innovation, which are key elements to achieve fairer and more competitive trade between the two regions. 

Annex on Intellectual Property

The Annex on Intellectual Property in the EU-Mercosur Agreement contains provisions to harmonise protection standards and ensure the effective enforcement of IP rights. One of the most notable aspects is the recognition and protection of more than 350 GIs from the EU and more than 220 from Mercosur. These efforts will ensure that iconic products such as Rioja wine or Colonia cheese are protected from imitation or misuse,  enhancing their value in international markets.

To facilitate trade between the blocs and ensure effective protection, clear rules are established for the treatment of GIs from Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) and their counterparts in the EU. The GI protection process starts with a public consultation and a thorough technical analysis. Then, the Common Market Group (CMG) approves a list of GIs to be mutually protected by the parties. Each country undertakes to ensure the protection of these GIs under its national law.

The agreement allows certain non-agricultural and non-agri-food products to be protected under national legislation. However, protection is not mandatory for GIs that are not registered in their country of origin or that have fallen into disuse. In addition, GIs from countries outside Mercosur are excluded, as are names already in common use in the Member States. This ensures that only products  authentically linked to a geographical origin are eligible for protection.

It should be noted that a recognised GI cannot be considered a common name. Likewise, common names of a country cannot be protected as GIs. In the case of homonymous GIs (GIs with the same name but different origins), the parties may allow them to coexist on the market, as long as consumers are not confused about the origin of the product. Furthermore, to prevent the misuse of GIs as trade marks, the agreement prohibits the registration of signs that are identical or contain a GI, except in exceptional cases where applications have been made in good faith before the entry into force of the agreement.

Parties may apply for the protection of a GI by submitting a technical form electronically under the procedure set out in the Annex. This mechanism streamlines and organises the GI recognition process, promoting more efficient and transparent management for all parties involved.

Lastly, the agreement establishes a GI Committee composed of representatives of the national authorities responsible for the protection of GIs and of the Ministries of Foreign Affairs of the participating countries. This committee will oversee the implementation of the agreement, handle notifications of new GIs, and ensure compliance with the agreed terms, thus ensuring strong governance and effective monitoring of the agreement.

Impact on SMEs

The EU-Mercosur agreement will bring significant benefits to European SMEs, allowing them to save more than €4 billion annually by eliminating high tariffs. In addition, the simplification of customs procedures will make it easier to export European products, streamlining the process and reducing bureaucracy. EU companies will also be able to participate in public tenders on an equal footing with Mercosur companies. This reduction of barriers will be essential for EU companies to take full advantage of opportunities in Mercosur, a market of 273 million people and a €2.2 trillion economy.

European SMEs will also benefit from preferential access to raw materials, especially in sectors related to the ecological transition, such as renewable energy and green products. Likewise, the elimination of tariffs on key products such as machinery, car parts, and pharmaceuticals will allow European companies to better compete in a market with significant growth potential for EU exports, mainly in Brazil.

In addition, the agreement continues to protect the interests of European farmers and producers by ensuring that food products entering the EU meet its high safety standards. It also reaffirms the commitment of both the EU and Mercosur to fight climate change and protect the environment. This includes a pledge to halt deforestation, promote sustainable management of natural resources, and create a more predictable and sustainable trading environment for all parties.

Content on the MERCOSUR countries

Should you be interested in knowing more about Intellectual Property in Argentina, Brazil, Paraguay, or Uruguay, you can check the materials we have on each country under “Country Materials”.

Inside each country page, you may find country factsheets, IP systems comparatives, factographs, and key articles on the target country.

Contact us

If you would like to be up to date with the latest news about IP in the Mercosur countries, or any country in Latin America, please let us know by making use of our Helpline. It’s free, fast (maximum 3 working days), and you will get an answer from our IP experts back in English, French, Italian, German, or Portuguese (upon experts’ availability).