EU announces provisional application of Mercosur agreement

“I have said before: when they were ready, we would be ready. Therefore, over the last few weeks, I have debated this topic intensively with Member States and with Members of the European Parliament. On this basis, the Commission will now proceed with the provisional application,” Von der Leyen said in a no-questions-asked statement at the European Commission headquarters. The scheduled date for the inauguration of the pact has not yet been announced.

The European leader recalled that, in January, the European Council had already given the Commission the provisional application of the agreement upon ratification by a single Mercosur country.

“Provisional application is, by nature, provisional,” noted Von der Leyen, referring to the fact that, “in accordance with the EU treaties, the agreement can only be considered fully concluded once the European Parliament has given its consent.”

In this sense, he said that the European Commission “will continue to collaborate closely with all EU institutions, Member States and interested parties to ensure a fluid and transparent process” in the implementation of this agreement, which was negotiated for more than 25 years and will create a market of 720 million people.

The Community Executive can proceed with provisional application without the ratification of the Eurochamber, whose final vote will have to wait for the Court of Justice of the European Union to rule on the compatibility of the agreement with community treaties.

The EU, on the other hand, implemented safeguards to protect European farmers in the face of possible drops in local prices or increases in imports of sensitive products, an addendum that was fundamental in convincing countries and MEPs who were reticent to the pact due to pressure from the agricultural sector.

Following Uruguay and Argentina’s ratification, Von der Leyen expressed confidence that Brazil and Paraguay “will soon follow suit.”

“And it is very good news. Because it demonstrates the confidence and enthusiasm of our partners in boosting our relationship and putting this historic agreement into practice”, declared the President of the Commission, about a pact that, according to her, “opens countless opportunities, reduces billions in tariffs and allows our small and medium-sized companies to access markets and scales that they could only dream of before”.

Furthermore, he highlighted that the agreement also provides Europe with “a strategic advantage by being the first to act in a world of strong competition and short horizons”.

Von der Leyen called the agreement “one of the most important trade pacts of the first half of this century” between “partners who understand that open, rules-based trade delivers positive outcomes for all.”

Countries’ reaction to the announcement

A France treated the news as an “unpleasant surprise”, in the words of President Emmanuel Macron himself. He warned that Paris will remain vigilant to ensure compliance with what has been negotiated in recent months.

Macron referred to the European Commission’s announcement as a “unilateral” decision. He argued that this assumes “a great responsibility”, mainly towards farmers who expressed concerns regarding the agreement.

In his opinion, the Europeans did not give them “the necessary visibility” at a time when negotiations on the future Common Agricultural Policy (CAP) were just beginning, and now this provisional application “adds even more uncertainty”.

The government of Argentinain turn, welcomed the measure. Foreign Affairs Minister Pablo Quirno said this Friday that the trade pact will make his country prosper.

A Italy also celebrated the progress in implementing the agreement. The Minister of Foreign Affairs, Antonio Tajani, classified the decision as “a positive boost for exports”, and announced a meeting with businesspeople to update them on the situation in Latin America.