The European Union’s mammoth trade deal with South American bloc Mercosur provisionally enters into force Friday, despite a pending court ruling on its legality. The agreement to create one of the world’s biggest free-trade zones was sealed in January after more than 25 years of intermittent negotiations. Together, the EU and Mercosur account for 30 percent of global GDP and more than 700 million consumers.
The deal, which eliminates tariffs on more than 90 percent of trade between the two sides, has proven divisive in Europe. France has led opposition over concerns some of its farmers will be left worse off. But — backed by a majority of EU countries — Brussels ploughed ahead as it pushes to diversify trade in the face of challenges from the United States and China. European Commission chief Ursula von der Leyen on Friday hailed the start of the deal’s implementation, stating on X: “Provisional application will show the agreement’s tangible benefits.”She said that “as of now… tariffs start falling” and European companies “are gaining access to new markets”.
The agreement favours European exports of cars, wine and cheese, while making it easier for South American beef, poultry, sugar, rice, honey and soybeans to enter Europe. Von der Leyen and Antonio Costa, the president of the European Council, held a video call to mark the occasion with Mercosur leaders, which include Argentina and Brazil. Afterwards, Costa said the agreement was “more than a trade deal” but “a partnership that reflects our shared vision of the world”.”A resilient multilateral system rests on win-win agreements like this, grounded on rules, values and shared interests,” he wrote on X.- Wrangling -Von der Leyen said that “legitimate” sensitivities in the EU had been addressed while trade commissioner Maros Sefcovic called it “a big day for EU trade”.”It’s a chance for growth and stronger ties with important global partners,” he wrote on X.
The application of the deal comes after the European Parliament referred it to the EU’s top court in January, instead of giving it the green light. France unsuccessfully attempted to block the deal over worries for its farmers, who fear being undercut by cheaper goods from agricultural powerhouse Brazil and its neighbours. The staunch French opposition to the pact caused a public rift with export-dependent Germany, pitting the EU’s two biggest countries against each other.
French left-wing MEP Manon Aubry told AFP it was a “dark day”. European farmers “will be facing unfair competition from hundreds of thousands of tonnes of agricultural products that will flood the European market”, she said. Health and environmental standards would not be as high, Aubry added. In the run-up to the signing of the deal, farmers in tractors, with smoke flares and flags, turned out in force on the streets of Brussels and Strasbourg, to voice their opposition.
But German Foreign Minister Johann Wadephul on Friday issued his own social media post hailing the Mercosur deal’s implementation.”This strengthens our resilience & rules-based trade,” he said on X. At the same time as it has looked to wrap up the Mercosur deal, the EU has also ploughed on with other agreements to get closer to other important markets such as India, Australia and Indonesia.
Fri, 01 May 2026 16:23:14 GMT