EU accelerates free trade agreements agenda

In a context marked by the uncertainty surrounding global commercial politics—and likely as a reaction to the protectionist measures adopted by the United States (US)—the European Union (EU) has significantly intensified its negotiation strategy for free trade agreements ("FTAs") with third countries. This strategic shift represents an opportunity for companies with an international presence; however, it also presents challenges, since companies must adapt their operational structures and customs compliance to a new map of preferential trade relations. Although many of these agreements are still under negotiation or pending ratification, it is worth anticipating and making the most of this time to explore new markets.

The Asia-Pacific region has become the epicenter of the European Commission's (the “Commission”) trading activity. India stands out, having concluded negotiations in January 2026 for an FTA, an Investment Protection Agreement and a Geographical Indications Agreement. The texts are currently under legal review, pending signature and ratification. Once in force, these agreements could be particularly significant for the European agri-food sector, and for the pharmaceutical, automotive, and industrial machinery industries.

The EU is also actively negotiating with other key partners in Southeast Asia, including Indonesia, Malaysia, Thailand, and the Philippines. Once finalized, these agreements could create opportunities for various industrial and services sectors.

One of the most significant developments is the opening of negotiations with countries from the Gulf Cooperation Council (the "Council"). In June 2025, the Council authorized the Commission to negotiate a regional agreement as well as bilateral agreements with Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Negotiations with the United Arab Emirates are progressing at a good pace, and conversations have started with Qatar for a Strategic Partnership Agreement. If successful, these agreements could be particularly relevant for the luxury goods, professional services, construction and infrastructure, technology, and energy sectors.

As part of efforts to strengthen relations with strategic partners, the updated Free Trade Association Agreement with Ukraine—which entered into force on October 29, 2025—is noteworthy. Turkey is laying the groundwork to modernize the existing customs union, although the negotiation mandate is still pending approval. Likewise, negotiations with Ecuador concluded in January 2026 for a Sustainable Investment Facilitation Agreement, which is pending ratification.

It is also worth highlighting that, on February 17, 2026, the Commission adopted proposals for signing the EU-UK Agreement in respect of Gibraltar. This agreement aims, among other measures, to create a customs union and remove physical barriers on goods circulating between Gibraltar and the EU, which could be of interest to companies operating in the Campo de Gibraltar region.

The EU-Mercosur Partnership Agreement deserves a special mention. Negotiations reached political conclusion in December 2024, after over 20 years of discussions and significant disagreements. This agreement will link the EU with Argentina, Brazil, Paraguay, and Uruguay, creating one of the largest free trade areas in the world, with a shared market of over 700 million people. Earlier this year, given the current context of global trade tensions and the need to diversify markets and strategic partners, the Commission opted to provisionally apply the trade pillar of the agreement through an interim Trade Agreement, enabling trade relations to be activated immediately without waiting for full ratification by all Member States. Provisional application is expected to start in Argentina and Uruguay in spring 2026, while Brazil and Paraguay could join at a later stage. The exact date of entry into force for each country will be published in the Official Journal of the EU. This agreement will create important opportunities for the automotive, pharmaceutical, machinery, chemical, and agri-food sectors.

The EU is also leading the global agenda on digital trade. The EU-Singapore Digital Trade Agreement, signed on January 20, 2026, is particularly noteworthy as it establishes a pioneering legal framework to facilitate digital trade between the two parties. Similarly, negotiations for a digital trade agreement with South Korea concluded in March 2025 (pending ratification), and discussions along similar lines have started with Canada.

The acceleration of the European trade agenda represents a strategic response to global trade tensions and could offer EU companies new avenues for diversifying markets and supply chains. To take advantage of the new tariff preferences that these agreements will provide to economic operators, it will be essential to thoroughly analyze the specific rules of origin under each FTA, since effective access to preferential rates will depend on compliance with these rules. Companies must evaluate whether their current products and supply chains enable them to prove the required preferential origin or whether adjustments will need to be made to their production and supply processes.

 Given the dynamic nature of this scenario, specialized advice on international trade and customs matters is essential to monitor developments, anticipate regulatory changes, and identify opportunities as these agreements come into effect.

For more information, please contact our specialists through the Knowledge and Innovation Area.