EU to Temporarily Implement Mercosur Trade Agreement from May 1

The European Commission has announced that it has sent a notification to Paraguay, the legal depositary of the agreement, to allow the EU-Mercosur trade deal signed in January to be provisionally applied before the formal ratification process is completed. According to the Commission's statement, the agreement will be provisionally implemented for all Mercosur countries—including Argentina, Brazil, Uruguay, and Paraguay—starting May 1. The statement noted, “Provisional application will ensure the removal of tariffs on certain products from day one, establishing predictable rules for trade and investment. This will allow EU businesses, consumers, and farmers to immediately benefit from the agreement. At the same time, sensitive sectors of the EU economy will be secured through robust protection measures.”

The EU-Mercosur trade agreement, which took 25 years to negotiate, will fully enter into force following the provisional application once it is approved by the European Parliament and the EU Council. The EU and the Mercosur countries—Argentina, Brazil, Uruguay, and Paraguay—had signed the agreement on January 17. Under the deal, Mercosur countries will be granted customs advantages on certain agricultural products such as beef, poultry, and dairy. In return, Mercosur countries will further open their markets to European industrial products.

While the EU states that the agreement includes safeguard clauses that can limit market access for sensitive agricultural products sent from Mercosur to the EU when necessary, European farmers find these measures insufficient. Brussels considers the agreement a significant geopolitical gain that will increase the EU's share and influence in Latin American trade. While Germany and Spain support the deal, several countries—most notably France, Poland, and Hungary—as well as farmer organizations across Europe, are opposed. The European Parliament has also signaled a cold reception to the signed trade deal and has initiated legal proceedings regarding the matter at the European Court of Justice.