The European Commission will proceed with the provisional application of the Mercosur trade agreement with Argentina, Brazil, Paraguay and Uruguay, European Commission President Ursula von der Leyen said on Friday.
Her announcement followed ratification of the pact by Uruguay and Argentina on Thursday, which paved the way for provisional implementation. “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.
The move comes as the 27-nation EU seeks new trade partners in the face of US tariffs and China’s dominance in critical minerals, pushing the bloc to broaden its network of free trade agreements worldwide. Provisional application lets companies in the EU, Uruguay and Argentina benefit from new customs rules and other advantages before the treaty formally enters into force.
After 25 years of negotiations, the Mercosur deal was signed in Paraguay on January 17 and aims to create a free trade zone covering more than 700 million people. On January 21 the European Parliament narrowly decided to refer the agreement to the European Court of Justice (ECJ) for review before a final parliamentary vote, delaying full implementation.
Von der Leyen stressed that provisional application is temporary and that the agreement can only be fully concluded once the European Parliament gives its consent. Critics say she is effectively sidestepping lawmakers ahead of the treaty’s full entry into force, a step likely to attract criticism. Von der Leyen defended the decision as necessary for resilience, growth and Europe shaping its own future, adding that businesses, workers and citizens should reap the benefits as soon as possible. She did not take questions after her statement.
The deal has provoked strong opposition from farmers and environmentalists. European farmers fear being undercut by cheaper imports; France, the EU’s largest agricultural producer, has been a vocal opponent and has attempted 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 groups warn the pact could increase EU demand for Mercosur agricultural products and further drive deforestation in South America. Opponents also argue the agreement’s wording might allow future trade deals to be approved without full consensus among EU member states.
Supporters point to opportunities for the automotive sector, mechanical engineering and pharmaceuticals within a large new trading bloc. Germany’s foreign minister, Johann Wadephul, called the deal “historic” and said Germany would work to tap its full potential.
Edited by: Rana Taha