Nearly all Bulgarian exports to Mercosur countries are set to benefit from the EU trade agreement approved on Friday, according to European Commission data. The pact, the largest in EU history, covers Argentina, Brazil, Paraguay, and Uruguay.

Exports are a significant driver of employment in Bulgaria, with 866,000 jobs in the country supported by EU trade with global partners, including Mercosur. Of these, 4,800 positions are directly tied to exports to the South American bloc, handled by 183 Bulgarian companies, 79 percent of which are small and medium-sized enterprises.

Customs Duties on Most Products to Be Reduced

The agreement eliminates tariffs on 91 percent of all products. Bulgaria’s total trade with Mercosur reached €637 million, combining goods trade in 2024 and services in 2023. Key export sectors stand to benefit:

• Chemicals and pharmaceuticals: €18 million exported in 2024; existing duties of 14–18% to be abolished.

• Machinery and equipment: €16.5 million exported; duties of 20% to be removed for most items.

• Optical, medical-surgical, measuring, and photographic instruments: €11 million in exports, currently taxed at 18%, soon duty-free.

• Food industry products: €13 million exported in 2024, with tariffs ranging from 27 to 55%. These duties will be significantly reduced, with some products seeing zero tariffs.

First Safeguard Clause Protects Farmers

The agreement introduces a safeguard clause to protect EU farmers, including Bulgarians, from sudden import surges. Maximum import volumes with lower tariffs are set at 99,000 tonnes for beef (1.5% of EU annual production), 25,000 tonnes for pork (0.1%), and 180,000 tonnes for poultry (1.3%). Agricultural products account for just over 5% of total EU-Mercosur trade, and protests from farmers are largely political. France voted against the deal, while Italy’s objections delayed its December 2025 signing.

Protection of Bulgarian Geographical Indications

The agreement safeguards 344 geographical indications across the EU, including three from Bulgaria: Bulgarian rose oil, "Danube Plain" wine, and "Trakiyska Nizina" wine.

Expanded Opportunities in Services

The deal also opens Mercosur markets to services. In 2023, Bulgaria exported €18.1 million in services, including €8.3 million in telecommunications, €6.1 million in tourism, and €2.2 million in transport. New opportunities will arise in finance, postal and courier services, digital commerce, and environmental services.

This agreement promises to strengthen Bulgaria’s export potential across goods and services, while simultaneously providing safeguards for sensitive sectors and promoting international recognition of Bulgarian products.