EU Prepares for Mercosur Trade Agreement Amid Legal Review
FRANKFURT, Germany – The European Union is poised to provisionally implement a wide-ranging free trade agreement with the Mercosur group of South American nations, according to the head of the EU’s Executive Committee. This announcement comes even as the EU Parliament has voted to delay ratification for a legal review.
European Commission President Ursula von der Leyen stated at the conclusion of the EU summit in Brussels that the EU could take steps forward if at least one Mercosur member country ratifies the deal, noting that several national leaders have brought up the topic.
“We are clearly interested in ensuring that the benefits of this agreement are applied as quickly as possible,” von der Leyen said during a news conference. “The bottom line is, when they’re ready, we’re ready.”
However, she clarified that no formal decision has yet been made regarding the implementation of the agreement.
Antonio Costa, President of the Council of EU Member States, echoed this sentiment at the same press briefing, mentioning that the Executive Committee has the authority to move forward with an interim implementation.
This potential decision may attract pushback from critics of the agreement, particularly in France. Earlier in the week, the Parliament voted narrowly to refer the trade deal to the European Court of Justice for a legal assessment, which means that ratification is on hold until the court delivers its ruling—something that could take several months.
The deal is a key component of Brussels’ strategy to strengthen trade relationships, particularly in light of a desire to reduce reliance on the U.S. following tensions during Donald Trump’s presidency. There have also been agreements with nations from Japan to Mexico, and another deal with India is in the works for later this month.
Endorsed by South American countries involved in livestock production and various European industries, the agreement is designed to eliminate over 90% of tariffs on products such as Argentine beef and German automobiles. This would create one of the largest free trade zones globally, ultimately benefiting over 700 million consumers.
France, the leading agricultural producer in Europe, has urged for more robust protections for its farmers, calling for a delay in the agreement.
On the other hand, German Chancellor Friedrich Merz expressed disappointment at the postponement of the vote, advocating for the provisional application of the deal.
In South America, the agreement is largely supported, and its ratification is viewed as highly likely.
Mercosur includes the region’s two largest economies, Argentina and Brazil, along with Paraguay and Uruguay. Bolivia is a new member that isn’t part of this trade deal but may join later. Venezuela is currently suspended from the bloc and is also excluded from the agreement.
