European Commission President Ursula von der Leyen said on Friday the Commission will move ahead with the provisional application of the Mercosur trade agreement with Argentina, Brazil, Paraguay and Uruguay. Her announcement followed ratification of the pact by Uruguay and Argentina on Thursday, which she said opened the way for provisional measures. “I’ve said before, when they are ready, we are ready,” von der Leyen said. Brazil and Paraguay have not yet ratified the deal but are expected to do so soon.
Provisional application allows businesses in the EU, Uruguay and Argentina to start using new customs arrangements and other benefits before the treaty formally enters into force. The step comes as the 27-nation EU seeks new trade partners amid US tariffs and China’s growing role in critical minerals, and as the bloc aims to expand its network of free trade agreements.
After 25 years of talks, the Mercosur agreement was signed in Paraguay on January 17 and is meant to create a free-trade zone covering more than 700 million people. On January 21 the European Parliament narrowly voted to refer the agreement to the European Court of Justice for a legal review before a final parliamentary consent vote, delaying full ratification.
Von der Leyen stressed that provisional application is temporary and that the deal can only be concluded once the European Parliament gives its consent. Critics say the move effectively sidelines lawmakers ahead of the treaty’s full entry into force and could draw political backlash. Von der Leyen defended the decision as necessary to bolster resilience and growth and to let businesses, workers and citizens benefit sooner. She did not take questions after her statement.
The pact has drawn strong opposition from farmers and environmental groups. European farmers fear being undercut by cheaper imports; France, the EU’s largest agricultural producer, has been a prominent opponent and sought to block the agreement. French MEP Celine Imart accused the Commission of showing contempt for farmers, and French President Emmanuel Macron called the announcement a bad surprise and disrespectful to the European Parliament.
Environmental organisations warn the deal could raise EU demand for Mercosur agricultural products and accelerate deforestation in South America. Opponents also say certain wording in the agreement could set precedents that allow future trade deals to be approved without full unanimity among EU member states.
Supporters point to export opportunities for the automotive, mechanical engineering and pharmaceutical sectors within a much larger trading bloc. Germany’s foreign minister, Johann Wadephul, described the agreement as “historic” and said Germany would seek to make the most of its potential.
Edited by Rana Taha