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EU Commission says ready to provisionally apply Mercosur trade deal
Summary
The European Commission said it can provisionally implement the Mercosur free trade agreement once at least one Mercosur country ratifies, after the European Parliament voted to send the pact to the EU court for legal review.
Content
The European Commission said it is prepared to provisionally implement the Mercosur free trade agreement once at least one Mercosur country completes ratification. This comment followed a vote by the European Parliament to refer the pact to the European Court of Justice for legal review, which pauses parliamentary ratification. Commission President Ursula von der Leyen and European Council head Antonio Costa addressed the issue at an EU leaders summit in Brussels. No formal decision to implement the deal provisionally has been taken.
Key points:
- Ursula von der Leyen said the Commission would be ready to act on provisional application when at least one Mercosur country ratifies, but emphasized no formal decision has been made.
- The European Parliament voted narrowly to refer the agreement to the European Court of Justice for legal review, preventing the parliament from completing ratification until the court rules.
- Antonio Costa said the Commission has the authority to move ahead on interim implementation.
- The vote to delay drew criticism from some leaders, while others, including German Chancellor Friedrich Merz, urged provisional application.
- The agreement aims to eliminate more than 90 percent of tariffs on goods traded between the EU and Mercosur members, and covers Argentina, Brazil, Paraguay and Uruguay (Bolivia is not included; Venezuela remains suspended).
Summary:
If the Commission decides to apply the deal provisionally after at least one Mercosur ratification, parts of the agreement could enter into force before the EU court completes its review. The European Parliament’s referral means ratification at the EU level is on hold until the Court of Justice issues its opinion, a process that could take months. Undetermined at this time.
