European Commission President Ursula von der Leyen decided Friday to move ahead with the provisional application of the Mercosur trade agreement, brushing aside a judicial review launched by MEPs that has suspended the ratification process. The Commission will continue to work closely with all EU institutions to ensure a smooth and transparent process, von der Leyen told reporters, describing it as one of the most consequential agreements of the first half of this century.
EU-Mercosur’s 25-year deadlock
The deal has split member states for years, with Germany championing the agreement as a way to bolster access to global markets while France leads the opposition. French officials argue the deal will expose EU farmers to unfair competition from Mercosur imports. Negotiated over 25 years, Mercosur would create a free-trade area spanning more than 700 million people between the EU and Latin America, including Brazil, Argentina, Paraguay, and Uruguay.
Unprecedented Latin American access
Von der Leyen stated the agreement would give European companies access to the Latin American market to a degree they could only dream of before, highlighting its massive export potential. She added that it provides Europe with a strategic first-mover advantage in a world of sharp competition as the EU seeks to diversify its trade partners amid rising geo-economic tensions.
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Bypassing parliamentary freeze
Opponents secured a majority in the European Parliament to refer the deal to the Court of Justice of the European Union in January, which effectively froze the formal ratification. Despite this, the Commission retained the legal option to provisionally apply the deal once one or more Mercosur countries completed their own ratification. Argentina and Uruguay have already done so, paving the way for the EU executive to proceed.
