site.btaEU-Mercosur Trade Deal Opens New Opportunities for Bulgarian Businesses and Farmers, EC Says

Bulgaria stands to gain significant economic benefits from the historic trade partnership signed Saturday between the European Union and the South American Mercosur bloc, the European Commission’s (EC) Directorate-General for Trade and Economic Security (DG Trade) noted on its official website.

The agreement, creating the world’s largest free-trade area, will make it easier and cheaper for Bulgarian companies, especially small businesses, to access Mercosur markets, while allowing producers of industrial and agri-food products to expand exports. Traditional Bulgarian delicacies are expected to see higher sales and premium prices abroad.

Trade is vital for Bulgaria’s economy, with 866,000 jobs, or one in four employed Bulgarians, supported by national and EU exports. Bulgaria’s total trade with Mercosur reached EUR 637 million in 2024. Under the deal, tariffs on 91% of products will be removed, benefiting nearly all Bulgarian exporters, including chemicals, machinery, and medical and optical instruments. 

Bulgarian farmers are expected to benefit particularly from reduced or eliminated tariffs on agri-food products, which previously faced barriers of up to 55%. The agreement also protects three Bulgarian Geographical Indications - rose oil, Dunavska ravnina wine, and Trakiiska nizina wine - against imitation, helping secure higher prices and market recognition. Safeguards and quota limits will protect Bulgarian farmers against sudden market surges, while EU food safety and sustainability standards remain fully enforced.

The agreement will also open new opportunities in services, including finance, transport, telecommunications, and digital trade, while easing export processes for Bulgaria’s small businesses.

The European Union and the South American Mercosur bloc signed a historic trade agreement earlier in the day, establishing the largest free-trade zone in the world. The ceremony took place at the Jose Asuncion Flores Theatre in Asuncion, Paraguay, where the 1991 Asuncion Treaty originally created Mercosur. The signing was attended by the foreign ministers of Mercosur countries and EU Trade Commissioner Maros Sefcovic, alongside EU Commission President Ursula von der Leyen and European Council President Antonio Costa.

Paraguay currently holds the rotating presidency of Mercosur, having taken over from Brazil in late 2025. Mercosur leaders present included the presidents of Paraguay, Argentina, Uruguay, Bolivia, and Panama, as well as Brazil’s foreign minister. Von der Leyen described the agreement as a “symbol of a new partnership between Mercosur and Europe,” noting that the EU and Mercosur together account for roughly 20% of global GDP and over 700 million consumers.

Negotiations between the EU and the founding Mercosur members - Argentina, Brazil, Uruguay, and Paraguay - began in 1999. Although the agreement was announced in 2019, it had not been officially ratified due to EU demands on Amazon deforestation and climate change commitments. The European Parliament must now vote on the agreement before it can be formally approved by the EU Council and enter into force.