Currently there is no levy on packages worth less than 150 euros ($174) imported directly to consumers in the 27-nation bloc, in many cases via Chinese-founded platforms.
Last year, 4.6 billion such small packages entered the EU -- more than 145 per second -- with 91 percent originating in China. The EU expects the numbers to rise.
Member states, including France, and the EU executive hope the duty exemption can be done away with from the start of next year, rather than 2028.
They will now work on "a simple, temporary solution to enable earlier implementation as soon as possible", an EU official said.
European retailers say they face unfair competition from overseas platforms, such as AliExpress, Shein and Temu, which they claim do not often comply with the EU's stringent rules on products.
"Reaching a political agreement... sends a strong signal that Europe is serious about fair competition and about defending the interests of its businesses," EU trade commissioner Maros Sefcovic said after the agreement.
"Europe must be able to protect its borders effectively and uphold fair competition," he added.
The move comes as the EU strives to bolster the continent's competitiveness by making the lives of European businesses easier through slashing red tape.
- France hails 'key step' -
France is especially worried since around 800 million such packages were shipped to France alone last year.
French Finance Minister Roland Lescure welcomed the decision, saying Paris's efforts to reach an agreement had "paid off".
"This is a key step for the protection of European consumers and the internal market to fight more effectively to prevent dangerous products and those that do not comply with our European regulations entering," Lescure told AFP.
"We have taken a major step for the economic sovereignty of the European Union," the minister added.
Alongside the move agreed on Thursday, the EU executive in May proposed a small package handling fee worth two euros.
EU member states have yet to agree on the fee's level, but hope it will apply from late 2026.
Fed up with waiting, some states have already moved forward with their own plans, including Romania, which has imposed a five-euro fee on small parcels.
raz/del/sbk
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