Free trade agreements: how can you make the most of them?

Published the 23 April 2026

Highly present in the news, the European Union–Mercosur Agreement—like its predecessors CETA and TTIP—has sparked numerous discussions and sometimes heated debates… But what reality lies behind this acronym, as well as behind the new free trade agreements signed with India and Australia? What is their purpose and, above all, how can companies in our Region make the most of them?

While the European Union has always been a highly active economic player since its creation, multiplying free trade agreements with other partners, the process seems to have accelerated even further in recent months.

While 40 agreements (covering 70 countries) are currently in force, the Commission has already concluded two major agreements in the first quarter of 2026 alone, respectively with India and Australia, and signed the agreement with Mercosur (Argentina, Brazil, Paraguay and Uruguay).

Although the dates of entry into force for the agreements with India and Australia have not yet been defined, the Mercosur agreement is expected—according to the European Commission’s wishes—to come into effect… as early as May 1st, 2026!

What does a free trade agreement contain?

Free trade agreements, also known as trade agreements, are treaties concluded between two or more countries to facilitate trade and investment by removing certain barriers such as customs duties (reduction or elimination), improving access to public procurement markets, reducing various costs or simplifying certain certifications. These are the general provisions of free trade agreements, but each one has its own specific features and particular clauses.

Significant reductions in customs duties?

While it is important to examine each of the three aforementioned agreements in detail to understand their content, they all share a common foundation:

a gradual reduction of customs duties on a significant share of exported goods (91% to Mercosur, 90% to India and 97% to Australia) across all sectors: chemical and pharmaceutical industries, transport equipment, food & drinks, textile industry, machinery and equipment…

access to public procurement markets in partner countries for European companies (particularly in the services sector: telecommunications, finance, transport…)

Mercosur, India, Australia: already well-established relationships

These agreements do not start from scratch: they strengthen already existing trade relationships.

In 2025, the Brussels-Capital Region exported €79.92 million worth of goods to Mercosur (€2.69 billion for Belgium). The main export categories are:

“Products of the chemical and pharmaceutical industries” (€76.95 million)
“Food and beverage manufacturing industries” (€1.3 million)
“Machinery, equipment and electrical materials” (€0.84 million)

Exports to India amount to €16.26 million (€3.51 billion for Belgium), mainly in:

“Products of the chemical and pharmaceutical industries” (€12.5 million)
“Transport equipment” (€1.07 million)
“Machinery, equipment and electrical materials” (€0.92 million)

Finally, exports to Australia reached €17.16 million (€2.16 billion for Belgium), with the main categories being:

“Products of the chemical and pharmaceutical industries” (€13.57 million)
“Machinery, equipment and electrical materials” (€0.81 million)
“Transport equipment” (€0.72 million)

On the services side—even though data is not available at regional level—Belgium exported in 2024:

to Mercosur: €456 million (-10.2% compared to 2021)
to India: €411 million (+3.8%)
to Australia: €459 million (-4.2%)

In addition, hub.brussels is currently working on a detailed analysis of each of these agreements to identify their main strengths and the sectors that could benefit the most from their entry into force.