EU moves forward with Mercosur deal despite objections from European Parliament

By Melike Pala

BRUSSELS (AA) - The EU is moving ahead with the provisional application of its trade agreement with the South American bloc Mercosur, despite objections from the European Parliament, the chief of the European Commission announced on Friday.

Speaking in Brussels, Ursula von der Leyen confirmed that the commission will proceed with the provisional application of the deal after Uruguay and Argentina became the first Mercosur countries to ratify the agreement. Brazil and Paraguay are expected to follow.

Negotiated for more than 25 years, the EU-Mercosur agreement would create a free-trade area spanning more than 700 million people between Europe and Latin America, cutting billions of euros in tariffs and opening new market opportunities, particularly for small and medium-sized enterprises.

Despite these economic promises, the agreement has encountered significant resistance within the EU member states, as well as the European Parliament.

In January, opponents of the deal secured a majority in the European Parliament to refer it to the Court of Justice of the European Union, effectively freezing the formal ratification process.

Nonetheless, the EU Commission has retained a legal option to move forward. Under EU rules, the executive is allowed to provisionally apply the agreement once one or more Mercosur countries complete their national ratification procedures.

Von der Leyen said the conditions for provisional application have now been met, allowing the EU to act while awaiting the parliamentary consent required for full ratification.

"'Provisional application' is, by its nature – provisional. It is right there in the name. ... So, the commission will continue to work closely with all EU institutions, member states and stakeholders to ensure a smooth and transparent process," she said.

Von der Leyen described the Mercosur agreement as one of the "most consequential trade deals of the first half of the century," arguing it strengthens Europe's strategic position and deepens political ties with partners committed to open and rules-based trade.

Later on Friday, EU Commission spokesperson Olof Gill told reporters that von der Leyen had reached out to European Parliament leaders before announcing the decision.