European Commission President Ursula von der Leyen secured provisional application of the agreement despite a lawsuit in the EU Court of Justice, effectively bypassing a vote in the European Parliament to fully ratify it.
The agreement eliminates duties on most trade between the two blocs, creating a free trade area of more than 700 million people between the EU and Mercosur countries.
On Thursday, the European Commission chief called the agreement “good news for European businesses, consumers and farmers, who will benefit from new export opportunities with full protection for sensitive sectors.” quoted Euronews.
Opponents of the agreement
However, the agreement has met with far from unanimous support. Supporters say it opens up new, important markets for the economy, while critics warn it could weaken environmental regulations and damage EU agriculture.
The European Commission signed the agreement on January 17 this year, gaining the support of most member states. However, some states, led by France, continued to oppose the deal.
Dissatisfaction was repeatedly expressed by many EU farmers. On the eve of the signing, they took to the streets in tractors, protesting against what they considered unfair competition from imports from Mercosur.
In the European Parliament, opponents managed to win a majority in favor of referring the agreement to the EU Court of Justice to test its legality. If the European Court of Justice rules negatively, the deal will be suspended.
Mechanism of temporary application
Under pressure from supporters, Germany and Spain to access new markets amid growing geo-economic tensions, von der Leyen decided to resort to the provisional application mechanism.
However, the commission could only do so after at least one Mercosur country had ratified the agreement.
Brazil, Argentina and Uruguay have already met this condition, and Paraguay is expected to join soon.
Bolivia, a new member of Mercosur, was not involved in the negotiations but could join the agreement in the coming years.
