- 05/11/2026
- Article
- Look into the World of Processing
Mercosur opens up to the processing community
The EU-Mercosur agreement is now in force. The European chemical and pharmaceutical industries, as well as the mechanical and plant engineering sectors – both strongly represented at POWTECH TECHNOPHARM – can look forward to a surge in their exports to South America. Through the Processing Alliance, NürnbergMesse is also supporting access to this promising market.
Written by Dr. Ulla Reutner
As an international trade fair within the Processing Alliance network, POWTECH TECHNOPHARM looks beyond Europe’s borders – just like many of its exhibitors. Currently, the focus is particularly on South America. The free trade agreement between the EU and Mercosur (Argentina, Brazil, Paraguay, and Uruguay, as well as Bolivia as an associate member) promises to become a driver of trade. Visitor and exhibitor groups at POWTECH TECHNOPHARM also stand to benefit.
Brazil is, in any case, one of the markets that has increasingly come into focus for the processing community in recent years. The FCE Cosmetique and FCE Pharma trade fairs, focusing on fine chemical engineering, will take place there in early June 2026. Together with analitica Latin America (28–30 September 2027), they form the South American arm of the Processing Alliance. The global processing community benefits from synergies within this network, which also includes Foodtech & Global Pack in Athens and IPB China. It has set itself the goal of facilitating access to new markets for its customers across the board.
First-mover advantage for mechanical engineering
Since 1 May 2026, when the EU-Mercosur Agreement came into provisional force, market access and export opportunities have now improved in both directions. Mechanical and plant engineering in particular will benefit from the reduction of high tariffs in South America – averaging 11 per cent. The VDMA expects a significant competitive advantage over North America and Asia. It is anticipated that the so-called first-mover advantage will be exploited, as the countries in South America have not yet concluded a corresponding agreement with any other trading partner.
95 per cent of all mechanical engineering products will benefit from the tariff reductions. However, the German association VDMA criticises the fact that the tariff reduction periods range from ten to 15 years. Among the few products that will be reduced directly to a 0 per cent tariff rate are machines for the confectionery industry, cocoa, and chocolate. No tariff reduction is planned, however, for food processing machinery or pumps with measuring devices. Nevertheless, many VDMA members anticipate new business opportunities. The market had already shown positive growth by 2025. Exports to Mercosur countries rose by 7.1 per cent to around €3.5 billion.
90 per cent of chemical products to enter a huge market duty-free in future
Europe’s chemical and pharmaceutical industries, which account for the largest group of visitors to POWTECH TECHNOPHARM, will also be among the winners of the free trade agreement. Tariffs on their products have previously been as high as 14 per cent. In future, export-oriented sectors will be able to supply a huge market of 260 to 275 million consumers under more favourable conditions. Exports have so far amounted to around 14 to 15 billion euros. In the medium term, 90 per cent of chemical products are set to be exported duty-free. This should lead to a significant growth spurt, particularly for speciality chemicals, industrial materials, and active pharmaceutical ingredients.
The German Chemical Industry Association (VCI) is looking forward to open trade. Chief Executive Wolfgang Große Entrup comments on the move: “In uncertain times, Europe is thus sending a clear signal: cooperation rather than isolation. For the chemical and pharmaceutical industry, this means fewer hurdles and greater planning security in South America.”
Interested in this topic? Then come to POWTECH TECHNOPHARM and experience this and many other topics live at the trade fair. Secure your ticket here using the following code: PTTP26Insights
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