A trade agreement between the European Union and four South American nations may benefit pet food companies and their suppliers on both sides of the Atlantic. Mercosur, comprising Brazil, Argentina, Paraguay and Uruguay, is a major exporter of agricultural commodities and animal-derived ingredients used in global pet food production. The European Union, meanwhile, is both a large producer and a high-value market for finished pet food products. The agreement aims to reduce tariffs and improve market access for goods traded between the two blocs.
After two decades of negotiation, EU-Mercosur representatives reached a political agreement in December 2024. On September 3, 2025, the European Commission adopted proposals for two parallel legal instruments: the EU-Mercosur Partnership Agreement (EMPA) and the interim Trade Agreement (iTA). On January 16 of this year, the nations signed the EMPA and iTA.
Harmonized System codes related to pet food imports and exports
For the pet food industry, although dog and cat foods weren’t specifically called out in the text of the agreement, the key lies in customs classification. International trade agreements often structure tariff commitments around Harmonized System codes rather than consumer-facing product names. Finished dog and cat food sold at retail level is classified under Harmonized System code 2309.10, formally described as “dog or cat food, put up for retail sale.” This description is standard across World Customs Organization and European Union tariff schedules.
While the EU-Mercosur agreement text published by the European Commission does not call out HS code 2309.10 by name, tariff annexes associated with trade agreements list thousands of product lines using these classifications.
If tariff reductions or eliminations apply to HS 2309.10 under the agreement’s market-access commitments, finished pet food products would be included automatically. The same principle applies to pet food ingredients that fall under other animal feed or agricultural HS categories. As a result, the agreement could influence both finished product trade and ingredient sourcing, depending on final tariff schedules and implementation timelines.
Beyond tariffs, the agreement also reinforces the European Union’s sanitary and phytosanitary framework. Pet food traded under the agreement would still need to comply with all existing European Union animal health, food safety and traceability requirements. The agreement does not lower regulatory standards, but it may streamline certain approval or recognition procedures for eligible products.
For pet food manufacturers, the practical impact will depend on how individual HS lines are treated, as well as commercial factors such as logistics, currency movements and regulatory approvals. While the agreement may not create pet-food-specific provisions, its structure illustrates how trade policy can affect the sector indirectly through classification systems and broader agricultural trade rules.
