European Commission President Ursula von der Leyen announced on Friday the provisional application of the EU–Mercosur trade agreement, despite the deal currently being challenged before the Court of Justice of the European Union following a referral by the European Parliament.
The decision comes a day after Argentina and Uruguay became the first Mercosur member states to ratify the agreement. Brazil and Paraguay are expected to follow. Von der Leyen had previously pledged that “when the countries are ready, we will be ready too” on the EU side.
“Yesterday, Uruguay and Argentina became the first countries to ratify the EU–Mercosur Agreement,” von der Leyen said in a statement. “Brazil and Paraguay are expected to follow soon. This is very good news because it shows the trust and willingness of our partners to move our relationship forward and make this historic agreement work.”
In January, the European Council authorised the provisional application of the agreement once the first Mercosur country completed ratification. Von der Leyen said she had held intensive discussions in recent weeks with EU member states and members of the European Parliament before proceeding.
“On this basis, the Commission will now move forward with the provisional application,” she said. A Commission spokesperson declined to specify how many EU leaders were consulted prior to the decision.
Full ratification of the agreement remains on hold pending a ruling from the EU’s top court, after the European Parliament lodged a legal challenge last month. However, the Commission structured the deal in separate components, allowing the trade pillar, which falls under the EU’s exclusive competence, to enter into provisional force.
The agreement will therefore remain in provisional application until the European Parliament grants its formal consent. Von der Leyen said the Commission would continue to work closely with EU institutions, member states and stakeholders to ensure a smooth and transparent process.
According to the Commission President, the Mercosur deal creates a market of 720 million people, removes billions of euros in tariffs and opens opportunities for European small and medium-sized enterprises to access new markets.
“Mercosur is one of the most important trade agreements of the first half of this century,” she said. “It is a platform for deep political engagement with partners who see the world as we do.”
She framed the move as a strategic step in a competitive global environment, stressing that Europe must secure first-mover advantages where possible.
“It is about resilience. It is about growth and shaping Europe’s future,” she concluded.
Source: CNA