EuroWire, BRUSSELS: The European Commission said it will proceed with the provisional application of the EU-Mercosur trade deal after Argentina and Uruguay completed ratification, allowing key trade provisions to begin before the European Parliament gives final consent. Commission President Ursula von der Leyen announced the step on Friday, calling it the start of implementation procedures for the agreement with the Mercosur bloc, whose founding members are Argentina, Brazil, Paraguay and Uruguay.
Provisional application is tied to the interim trade agreement that contains the deal’s trade and investment liberalisation commitments. Under the legal framework approved by EU governments in the Council, provisional application can begin once the sides exchange formal notifications and complete required internal procedures. The start date is set to fall on the first day of the second month after that exchange, with application able to begin between the EU and the Mercosur partners that have ratified.
The move comes while the European Parliament is seeking a review by the Court of Justice of the European Union on whether the legal bases used for the agreements comply with EU treaties, a step that has paused the path to a final parliamentary vote. The Council authorised signature of both the broader partnership agreement and the interim trade agreement in January. In that Council vote, 21 member states supported the package, while Austria, France, Hungary, Ireland and Poland opposed it and Belgium abstained.
Ratification triggers provisional application
Argentina and Uruguay became the first Mercosur members to ratify the agreement on Feb. 26, following votes in their national legislatures. The trans-Atlantic deal was signed on Jan. 17 after negotiations that began in 1999 and were concluded in December 2024, splitting the package into two linked instruments: a comprehensive partnership agreement covering political dialogue and cooperation as well as trade, and the interim trade agreement designed to apply sooner for trade matters.
EU institutions describe the agreement as creating one of the world’s largest free trade zones, connecting a market of more than 700 million consumers across Europe and South America. The Council said trade in goods between the EU and Mercosur totalled more than 111 billion euros in 2024, with 55.2 billion euros of EU exports and 56 billion euros of imports, and that trade in services was worth more than 42 billion euros in 2023. The EU is Mercosur’s second-largest goods trading partner, accounting for almost 17% of Mercosur’s total trade in 2024.
Opposition centres on agriculture safeguards
France, the EU’s largest agricultural producer, has been the most prominent opponent, arguing the agreement risks undercutting EU farmers through increased imports of products such as beef, sugar and poultry. President Emmanuel Macron criticised the Commission’s decision to proceed with provisional application without a completed parliamentary process. The Council has said the deal includes safeguards and that its decision on the interim trade agreement introduces arrangements intended to allow rapid action if imports of sensitive agricultural products cause market disturbance.
Full entry into force still requires the European Parliament’s consent for the EU to conclude the agreements, and the comprehensive partnership agreement also requires ratification by all EU member states. The interim trade agreement is designed to function as a stand-alone instrument until it is superseded by the partnership agreement once that broader pact is fully ratified. The Commission said provisional application will apply only with Mercosur partners that have ratified and completed the notification formalities with the EU.