EU-Mercosur trade deal to take effect despite legal hurdles

The free trade agreement between the EU and the South American Mercosur bloc will soon move into provisional application, despite an ongoing review by the European Court of Justice (ECJ). European Commission President Ursula von der Leyen announced the move in Brussels following ratification by Uruguay and Argentina on Thursday.

Provisional application allows businesses in the EU, Uruguay, and Argentina to benefit from reduced tariffs and streamlined regulations before the treaty is formally ratified. This bypasses potential delays in the European Parliament, which narrowly voted in January to stall a final decision pending an ECJ review of the deal’s legality.

Legal limbo in Luxembourg

The timeline for the ECJ’s assessment remains uncertain. Recent expert opinions from the Luxembourg-based court have taken between 16 and 26 months, and there is no statutory deadline for a ruling.

Critics argue the deal’s structure unfairly bypasses the need for unanimous approval from all EU member states. Environmental and consumer advocacy groups also fear the pact could undermine EU standards for food safety, animal welfare, and carbon emissions—claims the European Commission has categorically dismissed.

While Uruguay and Argentina have led the way, Brazil and Paraguay will join the provisional application once their respective national approval processes are complete.

A rebuttal to protectionism

The deal is widely viewed as a strategic counterweight to US President Donald Trump’s protectionist trade policies. Von der Leyen described the pact as a "platform for deep political engagement with partners who believe in openness and rules-based trade." She added that the deal makes Europe "stronger and more independent" on the global stage.

This article was translated to English using an AI tool.

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