Brussels – The European Union will move to provisional application of its long-negotiated trade agreement with the Mercosur bloc of South American nations, European Commission President Ursula von der Leyen announced Friday, despite ongoing legal challenges and vocal opposition from some member states. The decision follows the ratification of the agreement by Uruguay and Argentina on Thursday, fulfilling a key condition set by the Commission for initiating the process.
The Uruguayan Chamber of Deputies approved the agreement by a vote of 91 to 2, mirroring the unanimous support it received from the Senate the previous day. Argentina’s Senate followed suit with a 69-3 vote, after the Chamber of Deputies had already given its approval on February 12th. “Uruguay has sent a strong message to the United States, Mercosur and Europe: that we have waited 25 years, but we are not willing to wait a single second longer,” stated Congressman Juan Martín Rodríguez following the Uruguayan vote.
Von der Leyen stated that the Commission would proceed with provisional application “based on the exchanges I’ve had in recent weeks with member states and elected officials of the European Parliament.” The agreement, which has been under negotiation for a quarter of a century, would create one of the world’s largest free trade zones, encompassing over 700 million people and representing approximately 25% of global GDP.
While the Commission’s move satisfies a condition previously stated by Von der Leyen – that action would be taken once at least one Mercosur nation ratified the deal – it comes amid a legal challenge to the agreement in the EU’s top court, initiated by European lawmakers concerned about its legality. A ruling from the court is expected to take months.
Brazil and Paraguay are expected to approve the trade pact in the coming weeks, with Brazil’s Chamber of Deputies having already signaled its support. In Paraguay, the agreement will be put to a vote in parliament after a break in sessions ending Sunday.
The announcement drew immediate criticism from France. French Agriculture Minister Annie Genevard expressed regret over the decision, calling it “very prejudicial” and stating it did not respect the decision-making process of the European Parliament. The concerns center on the potential impact of increased imports of South American agricultural products on European farmers.
The agreement aims to eliminate most tariffs between the EU and Mercosur countries, facilitating increased trade in goods such as vehicles, machinery, wine, and spirits from Europe, and beef, poultry, sugar, rice, honey, and soybeans from South America. The EU Commission has not yet determined whether to formally enact the agreement before ratification by the European Parliament.
