The EU trade agreement with Mercosur will enter into force provisionally on May 1 | Economy

More than 25 years of negotiations will lead on May 1 to the provisional entry into force of the trade agreement between the European Union and Mercosur. After the ratification of Uruguay and Argentina – later came that of Brazil and Paraguaythe other two members of the Latin American bloc − and the decision of the European Commission to launch it on an interim basis, all that remained was for some official procedures to be completed. They have already been fulfilled and the pact will be activated in just over a month, according to the European Commission.

The agreed text says that the agreement had to enter into force on the first day of the second month after the two parties had officially communicated that they were ready to take the step. All these processes have been carried out and this Monday they were completed with the sending by the EU Executive of the so-called “note verbale” to the South American countries. “The provisional application guarantees the elimination of tariffs on certain products from day one,” Brussels announced.

The provisional entry into force is very symbolic at a time when Europe wants to strengthen commercial ties with other territories in the world in the face of the American withdrawal. But that It does not imply that, on the part of the EU, all the steps have been taken so that the pact is fully consolidated. In fact, the European Parliament’s ratification is paralyzed until the EU Court of Justice rules on the legal doubts raised by MEPs last January. In principle there is little doubt in Brussels that the Luxembourg judges will rule in favor of the legality of the agreement, as has happened on other occasions. Then the parliamentary ratification process will have to be resumed, which is presumed to be very tight, as already demonstrated by the elevation of legal doubts to the European court, a move that many, including Trade Commissioner Maros Sefcovic, saw as a delaying tactic by those who reject the trade agreement with Mercosur.

“We are taking an important step to demonstrate our credibility as a leading trading partner. The priority now is to turn this EU-Mercosur agreement into concrete results, providing EU exporters with the platform they need to take advantage of new trade, growth and employment opportunities. Provisional implementation will allow us to start delivering on that promise. I look forward to seeing this agreement reach its full potential, strengthening our economy and reinforcing our position in global trade, while we complete all democratic procedures,” Sefcovic said.

The signing of trade agreements has become one of the priorities of the European Commission since Donald Trump’s return to the White House at the end of 2024 was clear. The US electoral result was key to promoting the last stages of the negotiation between Brussels and the South American bloc, but it has also been key to reaching agreements with India, Indonesia, Mexico, Singapore and South Korea.

Just this Monday, the president of the European Commission, Ursula von der Leyen, is in Australia trying to close another trade pact. This agreement, if reached, is a clear example of how the commercial and geopolitical scenario has changed with Trump’s second term. In 2023 the EU and Australia were not able to reach a meeting point due to Australian agricultural demands and European refusal. Two and a half years later, Canberra appears to be lowering those demands and Brussels is willing to accept concessions. That is to say, the impact of what is happening in the United States has not only softened negotiating positions in Europe, it has also done so in other parts of the world.