The European Commission is moving to “provisionally apply” the EU-Mercosur trade deal, despite not yet having consent from the European Parliament.
The decision follows ratification of the deal by Argentina and Uruguay on Thursday (26 February).
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In a statement, European Commission president Ursula von der Leyen said the European Council had “empowered the Commission to provisionally apply the Agreement as from the first ratification by one Mercosur country”.
She said ratifications by Brazil and Paraguay are expected to “follow soon”, adding the deal can be “fully concluded” only upon receiving consent from the European Parliament.
The EU-Mercosur accord has been stalled for years over agricultural concerns from several EU countries.
It was formally signed in January after receiving qualified majority approval from EU governments, despite farm groups calling it “fundamentally unbalanced” and “flawed.”
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By GlobalDataParliament referred the deal to the European Court of Justice (ECJ) within days of its signing, which at the time was expected to delay a final decision on the pact for at least a year.
The Commission’s provisional application decision has sparked sharp criticism from Copa-Cogeca, which represents European farmers and agricultural cooperatives.
The farm lobby said it perceives the decision as a “disregard” for their concerns.
“These concerns relate not only to increased import volumes, which put pressure especially on sensitive sectors such as beef, poultry, and sugar, but also to persistent asymmetries in production standards, environmental requirements, animal welfare rules, use of plant protection products, and labour standards, on which the EU has obtained no guarantees capable of truly reassuring producers and consumers.”
“Trade policy must not come at the expense of Europe’s agricultural model,” the lobby group said, cautioning it “risks further undermining trust between European institutions and rural communities”.
In contrast, SpiritsEurope trade body which represents the interests of EU spirits producers, welcomed the decision, with Mark Titterington, director general of the group calling it a “major opportunity” for the industry.
“It will deliver meaningful new market access, strengthen the protection of our geographical indications, support the phasing out of costly trade barriers and provide companies with greater options in terms of diversification,” he said.
For EU spirits producers, the deal grants access to a market of over 260 million consumers, cuts tariffs of up to 20%, and removes various non-tariff barriers, according to SpiritsEurope.
On Friday, von der Leyen said the deal “gives Europe a strategic first-mover advantage in a world of sharp competition and short horizons”.
The agreement focuses on reciprocal tariff liberalisation.
As part of the deal, the EU will phase out duties on 92% of Mercosur imports, while Mercosur countries will equally eliminate tariffs on 91% of EU goods.
The EU is Mercosur’s second-largest trading partner, accounting for nearly 17% of the bloc’s total trade in 2024, with bilateral goods trade exceeding €111bn ($130bn) that year.
