EU-Mercosur agreement opens 650,000-tonne Brazilian ethanol quota to Europe
The European Union and Mercosur signed their trade agreement on January 17, 2026 in Asunción. The energy component provides for an ethanol quota multiplied by six and 2 billion euros for Brazilian green hydrogen.
| Countries | Brésil |
|---|---|
| Companies | Cosan |
| Sector | Carburants Alternatifs |
| Theme | Régulation & Gouvernance |
The association agreement between the European Union and Mercosur concludes 25 years of diplomatic negotiations. The legal architecture separates the Interim Trade Agreement (iTA) from the broader political pillar, enabling early implementation without awaiting ratification by the 27 national parliaments. According to documents published by the European Commission’s Directorate-General for Trade, only approval from the European Parliament, scheduled for April 2026, and the Council is required to activate the trade component.
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