Argentina and Uruguay both ratified the controversial EU-Mercosur trade agreement yesterday (Thursday, February 26).

Senators in Argentina voted by 69 to 3 votes in favour of the agreement, which will create one of the world's biggest free trade zones, covering a market of over 700 million consumers.

Earlier in the day, Uruguay became the first of the four Mercosur countries to ratify the deal.

Brazil and Paraguay are yet to ratify the agreement.

Mercosur

According to the European Commission, the EU-Mercosur trade agreement, which has been 25 years in the making, is expected to remove duties on 91% of EU exports over a period of 10 years for most products.

It will allow 99,000t of Mercosur beef to enter the EU market with a 7.5% duty.

55% of the quota will consist of fresh or chilled meat and 45% of lower-value frozen meat.

EU farmers have major concerns about this aspect of the trade deal which led to some EU member states, including Ireland and France, opposing the agreement.

This was despite the European Commission putting various safeguards for potential market disturbance as a result of the deal in place.

The ratification of the trade deal by Argentina and Uruguay means that the European Commission could provisionally apply the agreement.

The agreement still requires approval from the European Parliament before it can be formally ratified.

Last month, a majority of MEPs voted by a tight margin in favour of a motion to seek legal advice from European Court of Justice.

Europe's top court is being asked to consider if the EU Mercosur Partnership Agreement and Interim Trade Agreement are compliant with the Treaties of the EU.

This may effectively delay the formal ratification of the deal until the legal advice is provided, with some sources stating that it could take 18-24 months.

Agriland has contacted the European Commission for comment.