Trade Deal Between EU, Mercosur Takes Effect

(MENAFN) The European Union formally launched the provisional application of its landmark trade agreement with the Mercosur bloc on Friday, marking a watershed moment in a negotiation process that stretched across more than a quarter of a century.

European Commission President Ursula von der Leyen announced the milestone on social media platform X, framing it as the dawn of immediate, tangible economic gains.

"Today, the EU-Mercosur agreement begins to apply provisionally. The benefits are real and visible as of now," von der Leyen said.

The Commission chief outlined a cascade of early impacts, noting that tariffs would begin declining at once, businesses would unlock access to previously untapped markets, and investors would gain the regulatory predictability they had long sought.

"Provisional application will show the agreement's tangible benefits, and how legitimate sensitivities have been addressed," she added.

Von der Leyen also positioned the provisional phase as a critical accountability mechanism, saying it would provide "the fullest evidence-based picture" for the European Parliament and member states to conduct their formal oversight responsibilities.

The agreement — more than 25 years in the making — is projected to establish one of the world's largest free trade zones, uniting over 700 million people across Europe and Latin America, slashing billions of euros in tariffs and expanding commercial opportunities, with particular gains expected for small and medium-sized enterprises on both continents.

The road to this moment, however, was far from smooth. The accord has faced sustained and significant resistance from within EU member states as well as from the European Parliament, reflecting deep divisions over agricultural competition, environmental standards, and economic sovereignty.

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