Trade Agreements: The European Union Steps Up Its Global Trade Strategy
Mercosur, India, Australia, Indonesia… The European Union is accelerating the diversification of its trade partnerships. Several major agreements reached key milestones in 2026, while Brussels continues negotiations in Southeast Asia and the Gulf.
For European businesses, these developments are opening up new opportunities in terms of market access, sourcing and customs duties.
In brief
The EU-Mercosur Interim Trade Agreement has been provisionally applied since 1 May 2026, while negotiations with India and Australia were concluded this year.
Other agreements are progressing with Indonesia, Malaysia, the Philippines, Thailand and the United Arab Emirates.
For importers and exporters, these agreements may provide access to reduced or eliminated customs duties, provided that the preferential rules of origin set out in each agreement are met.
EU-Mercosur: the trade agreement enters into application
The EU-Mercosur agreement reached a major milestone with the provisional application, since 1 May 2026, of the Interim Trade Agreement concluded with Argentina, Brazil, Paraguay and Uruguay.
The agreement provides, among other measures, for a progressive reduction in customs duties on many products and improved market access between the two blocs.
The full EU-Mercosur Partnership Agreement will follow a longer ratification process.
Another major development is the conclusion of negotiations between the European Union and India on 27 January 2026.
The future agreement is expected to significantly improve access to the Indian market for European businesses. The stakes are considerable: India is already a major trading partner for the EU, with €118 billion in trade in goods in 2025.
However, the conclusion of negotiations does not mean that the agreement is already applicable. The text must still go through the necessary legal and institutional steps before it can enter into force.
Negotiations with Australia were also concluded in 2026. The agreement is now going through the adoption and ratification process, as is the economic partnership with Indonesia, whose negotiations were finalised in 2025.
Southeast Asia and the Gulf in the spotlight
Brussels is not stopping with agreements that have already been concluded.
Talks with Malaysia, suspended since 2012, resumed in 2025. Negotiations are also underway with the Philippines and Thailand.
The European Union already has trade agreements with Singapore and Vietnam. These new negotiations are therefore gradually expanding the EU’s network of trade agreements across Southeast Asia.
A similar trend is taking shape in the Gulf. Negotiations with the United Arab Emirates, launched in 2025, are continuing with a view to concluding a future free trade agreement.
For European businesses, this growing network of agreements could create new export opportunities, as well as new sourcing possibilities.
Customs duties: an opportunity subject to conditions
For European importers and exporters, these agreements are more than diplomatic announcements.
Once applicable, they can directly change the conditions for accessing a market, particularly through the reduction or elimination of certain customs duties.
However, trading with a country that has a preferential trade agreement with the European Union does not automatically mean that goods qualify for reduced customs duties.
Businesses must notably verify:
the tariff classification of the goods;
the product’s preferential origin;
the rule of origin provided for under the relevant agreement;
any processing or manufacturing requirements necessary to acquire originating status;
the supporting documents required to claim preferential tariff treatment.
An incorrect origin assessment can therefore result in a preferential customs duty being wrongly applied and expose the company to a customs reassessment.
Conclusion
2026 marks a new stage in the European Union’s trade strategy.
Mercosur, India, Australia, Indonesia, Southeast Asia and the Gulf: Brussels is seeking to diversify its trading partners and open up new opportunities for European businesses.
For importers and exporters, these new agreements can create genuine opportunities to reduce customs costs, diversify sourcing and access new markets.
However, businesses need to closely monitor their entry into force, identify the products concerned and understand the applicable preferential rules of origin.
Behind every new trade agreement may lie a customs opportunity… provided you know how to apply the rules.
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Frequently asked questions
Which EU trade agreements have progressed in 2026?
The EU-Mercosur Interim Trade Agreement has been provisionally applied since 1 May 2026. Negotiations on trade agreements with India and Australia were also concluded in 2026. Other agreements or negotiations are progressing with Indonesia, Malaysia, the Philippines, Thailand and the United Arab Emirates.
Does a free trade agreement automatically eliminate customs duties?
No. A trade agreement may provide for reduced or eliminated customs duties on certain products, but access to preferential tariff treatment depends in particular on compliance with the applicable rules of origin and the required supporting documentation.
How can a company benefit from preferential customs duties?
A company must verify that its goods meet the conditions set out in the relevant trade agreement. This includes correctly determining the tariff classification, establishing the preferential origin, applying the relevant rule of origin and holding the required proof of origin.
