The trade agreement between the European Union and the countries of Mercosur will begin to be applied provisionally from next month of May, in a key step to unlock one of the most ambitious trade pacts of recent decades. The partial entry into force will allow activating a good part of its economic provisions before completing ratification by all member states.
From the European Commission, they have defended this path as a mechanism to accelerate the benefits of the agreement, especially in terms of tariff reduction and market opening. “The provisional application will allow companies and consumers to start benefiting as soon as possible,” they maintain from Brussels, who underline the positive impact foreseen in sectors such as automotive, industry or agri-food.
The agreement, negotiated for years between the EU and countries such as Brazil, Argentina, Uruguay and Paraguay, contemplates the elimination of trade barriers for a large part of the exchanges, which could significantly boost bilateral trade. Specifically, a progressive reduction of tariffs is foreseen that will facilitate European exports to South America, as well as the access of Mercosur agricultural products to the European market.
Nevertheless, the pact continues to generate reluctance in several Member States, especially due to its impact on the primary sector and due to environmental issues. Some governments have expressed doubts about the guarantees regarding sustainability and competition, which has slowed down its definitive ratification. The provisional application will allow to partially circumvent these blockages, by activating the commercial aspects that are exclusive competence of the EU, while political negotiations and national parliamentary processes continue.
