NOS Nieuws •
The European Commission is moving forward with the provisional implementation of the Mercosur trade agreement, according to Commission President Ursula von der Leyen.
This step bypasses the European Parliament, with the European Court of Justice set to review the trade agreement. Though, European law allows for the provisional implementation of a treaty, Von der Leyen stated.
The Mercosur trade agreement received approval from a majority of EU member states on January 9th. It aims to boost trade between the EU and Mercosur countries – Brazil, Argentina, Uruguay, and Paraguay – following over 25 years of negotiations. Several European countries opposed the agreement: France, Poland, Ireland, Austria, and Hungary.
Trade Dynamics: Imports and Exports
The agreement will allow South American and EU countries to reduce import tariffs and simplify procedures, making it cheaper and easier to export to and import from South America, and vice versa.
Opponents argue the agreement harms European farmers, fearing they cannot compete with cheaper meat and soy from South America.
To protect European farmers, the European Commission proposes setting maximum import quantities for certain sectors, preventing market disruption from excessive imports of beef, poultry, or sugar.
A Shift in Power Dynamics
The European Parliament previously voted for a proposal to refer the deal to the European Court of Justice for review.
This move stalled the implementation of the Mercosur agreement, as a court review could take one to two years.
With the recent ratification by Argentina and Uruguay, Von der Leyen hailed it as “fantastic news,” anticipating swift approval from Brazil and Paraguay. She acknowledged the need for final approval from the European Parliament.
The Urgency Behind the Move
Von der Leyen emphasized the economic benefits, stating the agreement creates a market of 720 million people and will save billions in import duties.
The European Commission is working closely with EU countries and institutions to ensure a “smooth and transparent” process.
A Commission spokesperson highlighted the urgency, stating further delays could “weaken Europe’s economic position and political influence.”
