The European Union is set to implement a comprehensive free trade agreement with the Mercosur group of South American countries on a provisional basis. This decision was announced by the head of the European Commission on Friday, following a recent vote by the EU Parliament to postpone ratification pending a legal review.
European Commission President Ursula von der Leyen said at the conclusion of a summit of EU leaders in Brussels, during which various national leaders raised the topic, that the EU is prepared to proceed as soon as at least one Mercosur country completes ratification.
“There is a clear interest that we ensure that the benefits of this agreement apply as soon as possible,” von der Leyen said at a news conference. “In short, we will be ready when they are ready.”
No formal decision has been made to implement the trade deal. However, António Costa, head of the EU Council, stated that the Commission could proceed with interim implementation, which may face criticism, especially from France.
The European Parliament recently voted to refer the deal to the European Court of Justice for legal review, delaying ratification until the court rules, which could take months.
The deal aims to reduce tariffs on goods, create one of the world’s largest free trade zones, and make shopping cheaper for over 700 million consumers. Supported by South American cattle-raising countries and European industries, it has broad backing in South America.
However, France, a major agricultural producer, wants stronger protections for farmers and has sought to delay the pact. German Chancellor Friedrich Merz has called the delay “regrettable” and supports the provisional application of the agreement.
Mercosur includes Argentina, Brazil, Paraguay, and Uruguay. Bolivia, the newest member, is not part of the trade deal but may join in the coming years. Venezuela, suspended from the bloc, is also excluded from the agreement.
This article used information from The Associated Press.
