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After more than twenty-five years of negotiations, the European Union and the Mercosur countries — Brazil, Argentina, Uruguay and Paraguay — finalized their trade agreement. Provisionally applied since 1 May 2026, the agreement marks a major step in economic relations between Europe and South America. For European companies in cosmetics, fragrance and home fragrance, the issue is twofold: benefiting from progressively improved commercial access to high-potential markets, while continuing to comply with regulatory requirements that remain largely national. Although the EU–Mercosur agreement creates new opportunities, it does not remove product registration obligations, labelling requirements or the need for a local responsible party in the countries concerned. For European brands, success will depend not only on commercial strategy, but also on early regulatory planning.