The European Union said on Monday, March 23rd that a free trade agreement with South American bloc Mercosur will provisionally enter into force on May 1—despite a pending court ruling on its legality.
The mammoth deal to eliminate tariffs on more than 90% of trade between the two blocs has proven divisive in Europe, with France leading opposition over concerns some of its farmers will be worse off because of it.
But Brussels has ploughed ahead anyway. According to EU trade chief Maroš Šefčovič,
Today is an important step in demonstrating our credibility as a major trading partner.
The priority now is turning this EU-Mercosur agreement into concrete outcomes, giving EU exporters the platform they need to seize new opportunities for trade, growth and jobs.
The move comes as Paraguay ratified the deal last week, becoming the last Mercosur member to do so after Argentina, Brazil, and Uruguay. Now, the European Commission, in charge of EU trade policy, declared
Provisional application ensures the removal of tariffs on certain products as of day one, creating predictable rules for trade and investment.
The pact still needs a green light from lawmakers in the European Parliament, which in January referred it to the EU’s top court within days of it being inked.
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