After more than 25 years of negotiations, the trade agreement between the European Union and Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) came into effect temporarily on Friday.
European Commission President Ursula von der Leyen has effectively avoided a parliamentary vote on the full ratification of the agreement, continuing the provisional application despite the legal objection before the Court of Justice of the European Union.
Von der Leyen, X’e wrote: “The temporary application will show the tangible benefits of the agreement.”
“And how legitimate sensitivities are handled.”
The EU president is expected to hold a video conference on Friday to celebrate the agreement with the leaders of the Mercosur nations.
The agreement eliminates customs duties on a large part of trade between the two sides, creating a free trade zone between the EU and Mercosur countries with more than 700 million people.
On Thursday, the EU President called the agreement “ good news for EU businesses of all sizes, good news for our consumers and good news for our farmers, who will get valuable new export opportunities with full protection for sensitive sectors.
Opposition to the agreement
However, the agreement was not welcomed by everyone in the same way. While supporters believe this unlocks new markets vital to the economy, critics warn that this could undermine environmental standards and regulations and harm AB’'s agricultural sector.
The European Commission signed the agreement on January 17, ’, after receiving the support of the majority of member states. However, some member states opposed the agreement, and France was at the forefront of the opposition.
Many EU farmers also expressed their dissatisfaction. Before the signing of the agreement, they took to the streets with their tractors to protest unfair competition from Mercosur imports.
In the European Parliament, however, opponents won a majority in the ’ to be referred to the Court of Justice of the European Union, ’na, to assess the legality of the agreement. If the European body decides against it, the agreement will be halted.
Under pressure from supporters of the agreement, such as Germany and Spain, who are eager to access new markets amid mounting geoeconomic tensions, von der Leyen opted for the provisional application.
However, the Commission was only able to do so after at least one Mercosur country ratified and declared the agreement.
Brazil, Argentina and Uruguay have already done so, and Paraguay’ is expected to follow suit.
President Luiz Inácio Lula da Silva, at a ceremony to celebrate the development in Brasilia’, said that there is nothing better than to believe in the implementation of “Democracy, multilateralism and sincere relations between nations”.
Bolivia, the newest member of the Mercosur’, did not take part in the negotiations but could join the agreement in the coming years.
