Brussels: European Commission President Ursula von der Leyen decided to proceed with the provisional application of the Mercosur trade agreement, sidestepping a judicial review initiated by Members of the European Parliament (MEPs) that had paused the ratification process.
According to Emirates News Agency, the European Commission will continue collaborating with all EU institutions to ensure a smooth and transparent process. Von der Leyen described the agreement as one of the most significant of the current century. The Mercosur trade deal, negotiated for over 25 years, aims to create a vast free-trade area of over 700 million people between the EU and Latin American countries, including Brazil, Argentina, Paraguay, and Uruguay.
The agreement has been a point of contention among EU member states. Germany has been a strong advocate, viewing it as a means to enhance access to global markets, while France has opposed it, citing concerns about unfair competition for EU farmers from Mercosur imports. Von der Leyen emphasized the opportunities it presents for European companies to access the Latin American market, noting the strategic advantage it provides in a competitive global environment.
Despite opposition that led to a majority in the European Parliament referring the deal to the Court of Justice of the European Union in January, effectively halting ratification, the Commission has opted to provisionally apply the deal. This decision followed the completion of ratification procedures by Argentina and Uruguay, enabling the EU executive to move forward.