Intellectual property and International Trade: The role of trademarks and patents in the EU–Mercosur Agreement

1. Introduction

Intellectual Property (IP) plays a central role in today’s international trade agenda. It is not only a legal matter but also a strategic tool for business competitiveness and investment attraction. Within the negotiations of the EU–Mercosur Association Agreement, the protection of trademarks, patents, industrial designs, and geographical indications (GIs) stands out as one of the most significant and sensitive chapters.

2. The European Union’s Perspective

The European Union (EU) consistently requires high IP standards in its trade agreements, aligned with the TRIPS Agreement and often reinforced by “TRIPS Plus” provisions. Key elements include:

• Strong patent protection, particularly in the pharmaceutical and high-tech sectors.
• Recognition and enforcement of European GIs for traditional products.
• Effective enforcement mechanisms, including customs measures and sanctions against counterfeiting and piracy.

3. The Mercosur Perspective

Mercosur (Argentina, Brazil, Paraguay, and Uruguay) presents diverse levels of IP development and enforcement across its member states. Generally:

• Patent systems remain restrictive in areas such as biotechnology and pharmaceuticals.
• Trademark law does not uniformly recognize non-traditional marks (e.g., sound or motion marks).
• Enforcement mechanisms face challenges due to limited institutional resources.

For the bloc, the agreement represents both a challenge and an opportunity:

• A challenge, since adapting legislation to European standards may affect sensitive sectors such as generic medicines, agribusiness, and the use of common product names.
• An opportunity, as it strengthens legal certainty for Mercosur exporters entering the European market and enhances local companies’ competitiveness.

4. Trademarks and Geographical Indications

The chapter on geographical indications (GIs) has been particularly contentious. The EU seeks recognition and protection of a wide list of European GIs, which may conflict with terms commonly used in the Mercosur region (e.g., “parmesan,” “champagne”).

In exchange, Mercosur could obtain international protection for its own designations, such as yerba mate, Brazilian coffee, wines from Mendoza or Canelones, and beef products from specific regions. This represents a strategic added value in global markets.

5. Patents and Technology Transfer

Regarding patents, the agreement presents a mixed outlook:

• On one hand, the EU promotes higher standards of protection, which could impact public policies on access to medicines and local industrial development strategies.
• On the other hand, the treaty opens opportunities for technological cooperation, knowledge transfer, and innovation incentives, benefiting strategic sectors such as biotechnology, software, agribusiness, and renewable energy.

6. Conclusion

The role of trademarks and patents in the EU-Mercosur Agreement is twofold:

• They serve as an instrument of trade integration and international competitiveness by allowing Mercosur companies to better protect their intangible assets in Europe.
• They also constitute a political and economic negotiation arena, requiring a balance between defending sensitive industries and fostering integration into higher-value global supply chains.

For legal practitioners and businesses in Mercosur, it is crucial to anticipate risks (e.g., disputes over GIs, limitations on generic medicines, trademark conflicts) and seize opportunities (e.g., preferential market access, brand valorization, and technology cooperation).