EU Commission to provisionally apply EU-Mercosur trade deal
The European Commission has confirmed today (Friday, February 27) that it will provisionally apply the EU-Mercosur trade agreement.
The move comes as Argentina and Uruguay yesterday became the first Mercosur countries to ratify the deal.
EU Commission President Ursula von der Leyen told a press conference this morning that "Brazil and Paraguay are expected to follow soon".
"This is such good news because it shows the trust and the eagerness of our partners to take our relationship forward and to get this landmark agreement to work," she said.
Mercosur
The agreement, which has been 25 years in the making, will create one of the world's biggest free trade zones, covering a market of over 700 million consumers.
President von der Leyen said the deal "opens countless opportunities".
"It cuts billions in tariffs. It allows our small and medium-sized businesses to access markets and scale they could only dream of before.
"It also gives Europe a strategic first move advantage in a world of sharp competition and short horizons," she said.
In January, the European Council gave its approval for the commission to provisionally apply the agreement once it had been ratified by one Mercosur country.
"I've said before, when they are ready, we are ready. Therefore, over the last weeks, I have discussed this intensively with member states and with members of the European Parliament.
"On that basis, the commission will now proceed with provisional application.
"Provisional application is, by its nature, provisional. It is right there in the name.
"In line with the EU treaties, the agreement can only be fully concluded once the European Parliament has given its consent," President von der Leyen said.
She added that the commission will "continue to work closely with all EU institutions, member states, and stakeholders to ensure smooth and transparent process".
Trade agreement
President von der Leyen said the EU-Mercosur trade agreement is "one of the most consequential trade agreements of the first half of this century".
"It is a platform of deep political engagement with partners who see the world as we do, and who believe in openness, in partnership and good faith, partners who understand that open and rules-based trade delivers us positive results for all.
"Mercosur embodies the spirit in which Europe is acting on the global scene, Europe is getting stronger and more independent.
"Our businesses, our workers and our citizens will reap the benefits, and they should reap them as soon as possible.
"This is about resilience. This is about growth and Europe shaping its own future," she said.
Parliament
The controversial trade 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.
As part of the agreement, 99,000t of Mercosur beef will be allowed to enter the EU market with a 7.5% duty.
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.
