Eucolait, the Brussels-based European dairy trade association, has welcomed the provisional application of the EU-Mercosur trade agreement following ratification by Argentina and Uruguay. The agreement creates a market of 720 million consumers and establishes one of the world's largest free trade zones after 25 years of negotiations.

Agriland reported that EU Commission President Ursula von der Leyen confirmed the move on 27th February 2026.

Eucolait, which represents 430 dairy trading companies from 21 countries including Ireland with an estimated combined turnover of €80 billion (£68 billion), stated the agreement "creates meaningful new opportunities for dairy businesses" through enhanced market access conditions. The association has represented the European dairy trading community since 1959.

The trade association emphasised that the agreement "provides balanced and reciprocal concessions for dairy products, primarily through tariff-rate quotas, while also addressing technical barriers to trade and improving regulatory cooperation." Eucolait believes these provisions will facilitate smoother trade flows and foster long-term sectoral collaboration.

Whilst European farmers have voiced concerns over increased beef and poultry imports from Mercosur countries, Eucolait stated the agreement "sends a powerful signal in support of open and rules-based trade at a time of heightened geopolitical uncertainty." The EU Commission has introduced market safeguards to address agricultural sector concerns.

The association's support demonstrates how trade bodies balance member interests whilst advocating for policies that expand commercial opportunities. Eucolait stated operators should benefit from improved market access conditions without delay as provisional application begins.

Anne Randles, director of corporate affairs at Irish dairy cooperative Ornua, currently serves as Eucolait president following her election in June 2025, strengthening Irish representation within the European dairy trading community.

See the full details on how the EU-Mercosur agreement creates opportunities for European dairy traders.