The European Commission has decided to provisionally apply the Mercosur trade agreement, proceeding despite opposition from the EU Parliament and a suspended ratification process. Commission President Ursula von der Leyen stated the agreement is "one of the most consequential" of the century, promising European companies unprecedented access to the Latin American market.
The deal, negotiated over 25 years, aims to establish a free-trade area between the EU and Latin America, encompassing over 700 million people. However, it has divided member states, with Germany supporting increased market access and France raising concerns about unfair competition for EU farmers.
Despite MEPs referring the deal to the Court of Justice of the European Union in January, the Commission retains the option for provisional application. Argentina and Uruguay have completed their ratification procedures, enabling the EU executive to move forward.