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First modification: 02/27/2026 - 15:49

The European Commission announced the provisional entry into force of the trade agreement with Mercosur after the ratification of Argentina and Uruguay in their legislatures. The pact, negotiated over 25 years, promises to create a market of 720 million people, but divides the European Union (EU) over its agricultural impact.

The president of the executive arm of the EU, Ursula von der Leyen, announced this Friday, February 27, the provisional entry into force of the commercial part of the association agreement between the European Union and Mercosur, after the ratification of the pact by Argentina and Uruguay on Thursday within their congresses.

The decision marks a turning point in a negotiation process that spanned more than 25 years and now opens the door to the largest free trade zone in the world in terms of combined population.

Von der Leyen defended the measure by pointing out that in January the European Council granted the Commission the power to provisionally apply the agreement once the first ratification by a Mercosur country occurred. “When they are ready, we will be ready,” he said in a statement without questions from the headquarters of the Community Executive in Brussels, Belgium.

"On that basis, the Commission will now proceed with the provisional application. It is right in the name, in line with the EU treaties. The agreement can only be fully concluded once the European Parliament has given its consent. Therefore, the Commission will continue to work closely with all EU institutions, Member States and interested parties to ensure a smooth and transparent process," he explained.

The German leader stressed that the provisional application “is, by nature, provisional” and recalled that the agreement can only be considered fully concluded when the European Parliament grants its formal consent, as required by the community treaties.

Read alsoThe European Parliament paralyzes the EU - Mercosur agreement and refers it to the highest court - France 24

The mega trade pact

The European Executive presents the pact as the largest trade agreement reached to date in terms of tariff reduction. Brussels estimates that, if fully implemented, it will eliminate around €4 billion in tariffs on European exports, strengthening key industrial sectors and expanding access to strategic raw materials.

The exchange between both blocks covers, on the European side, exports of machinery, chemical products and transport equipment, while minerals, plant products and alcoholic beverages flow from South America.

The Commission maintains that the agreement will make it possible to diversify supply chains and reduce vulnerabilities in a context of geopolitical and trade tensions.

Divided opinions

However, the initiative has deepened divisions within the community bloc. Germany and Spain lead the group of countries in favor of the agreement.

Berlin and Madrid argue that the pact is crucial to offset lost business from US tariffs and to reduce Europe's dependence on China for critical minerals and other strategic raw materials.

At the opposite extreme is France, the largest agricultural producer in the European Union, which leads the opposition against the backdrop of farmers deploying massive protests to defend their internal market.

Read alsoUruguay and Argentina become the first to ratify the Mercosur-EU agreement - France 24

Paris maintains that the agreement will significantly increase imports of beef, sugar and poultry at lower prices, which could hit European farmers.

Despite these tensions, the Commission chose to move forward with the provisional application to secure what Von der Leyen described as the first-mover advantage in an increasingly competitive global environment.

In the south, they are ready

In South America, Argentina and Uruguay became the first two Mercosur countries to ratify the trade agreement with the European Union. Their respective legislatures gave the green light to the implementation of the text signed on January 17 in Paraguay, sending a political signal of support for the bi-regional integration process.

With this initial ratification, the European Commission activates the mechanism that allows the provisional application of the trade chapter to begin while the institutional approval process continues in Europe, a process that, although close to completion, adds days to the extensive quarter-century of negotiations of one of the most important economic pacts in the world.

With Reuters and AFP

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