EU announces provisional application of Mercosur agreement

The European executive body, responsible for ensuring compliance with treaties, reported that it sent the necessary documentation to Paraguay, the depositary country of Mercosur agreements, a final procedural step that allows the provisional application of the initiative, in accordance with the EU Council decision of January 9. For the agreement to enter into force provisionally, the EU and Mercosur countries had to complete a formal procedure that included the exchange of diplomatic notes.

Thus, the trade agreement will be applied provisionally from May 1st between the EU and all Mercosur countries that have completed their ratification procedures and notified the EU by the end of March. Brazil, Argentina and Uruguay have already done so, while Paraguay recently ratified the agreement and the Commission expects it to send its notification soon.

With the European Commission’s announcement, the countries involved in the agreement will benefit from the elimination of tariffs on certain products “from day one, creating predictable rules for trade and investment”, noted the European body, adding that sensitive sectors of the EU economy “are fully protected by robust safeguards”.

“Today we take an important step to demonstrate our credibility as a first-class trading partner. The priority now is to translate this EU-Mercosur agreement into concrete results, providing EU exporters with the platform they need to seize new opportunities for trade, growth and jobs,” said Trade Commissioner Maros Sefcovic.

The definitive entry into force of the trade agreement, however, will depend on ratification by the European Parliament. Before the vote, the institution awaits a decision from the EU Court of Justice on the agreement’s compliance with the bloc’s own treaties.

As for the association agreement as a whole, which also includes political and cooperation provisions, the parliaments of the 27 Member States will need to vote. The agreement will cover a market of around 720 million people and a combined economy estimated at around $22 trillion.