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EU–Mercosur 'interim' trade deal: Quiet rewiring of two supply chains

13 Feb '26
7 min read
EU–Mercosur 'interim' trade deal: Quiet rewiring of two supply chains
Pic: Shutterstock

Insights

  • The EU–Mercosur ITA introduces staged, predictable tariff reductions for textiles and apparel, rather than immediate duty elimination.
  • Current trade remains input-heavy from Mercosur and technical-textile-led from the EU.
  • The deal is expected to reshape supply chains first in fibres and industrial textiles, with apparel gains emerging more gradually.

For textiles and apparel (HS Chapters ****), that pricing shift is not about overnight duty elimination. The ITA applies staged tariff reductions using predefined “staging categories” written into the tariff schedules. “Year *” begins at entry into force, and subsequent cuts occur every January *, according to a built-in timetable:

The headline for HS **** in both directions is therefore predictable, scheduled tariff elimination, not a single day-one cliff.

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