EU-Mercosur trade pact takes effect despite legal challenge

The European Union’s sweeping trade agreement with the South American bloc Mercosur has provisionally come into force on Friday, even as a court ruling on its legality remains pending, News.Az reports, citing AFP.

The pact, aimed at establishing one of the largest free-trade zones in the world, was finalized in January following more than 25 years of intermittent negotiations.

Combined, the EU and Mercosur represent around 30 percent of global GDP and a consumer base exceeding 700 million people.

The deal, which removes tariffs on over 90 percent of trade between the two regions, has sparked divisions within Europe. France has been at the forefront of opposition, raising concerns that some of its farmers could face negative impacts.

Nevertheless, with support from a majority of EU member states, Brussels has moved forward, seeking to diversify trade partnerships amid growing challenges from the United States and China.

European Commission President Ursula von der Leyen welcomed the launch of the agreement’s provisional application, writing on X that it would demonstrate the deal’s “tangible benefits.”

She noted that tariffs are already beginning to decrease and that European companies are gaining improved access to new markets.

Under the agreement, European exports such as cars, wine, and cheese stand to benefit, while imports into Europe of South American products—including beef, poultry, sugar, rice, honey, and soybeans—will become easier.

News.Az 

By Nijat Babayev