The EU-Mercosur agreement has provisionally entered into force. Announcement of the head of the European Commission

The President of the European Commission, Ursula von der Leyen, announced on Friday, February 27, the provisional entry into force of the association agreement between the European Union (EU) and Mercosur, informs a press release from the European executive.

Ursula von der Leyen PHOTO European Commission

“We have also said: When they are ready, we will be ready too. Therefore, in recent weeks, we have discussed this intensively with the Member States and with the members of the European Parliament. On this basis, the Commission will now proceed with the provisional application” of the agreement with Mercosur, stated the head of the European Executive, quoted by Agerpres.

“'Provisional application' is by its nature provisional. It is mentioned in the name itself. Under the EU Treaties, the agreement can only be fully concluded after the European Parliament has given its consent. The Commission will therefore continue to work closely with all EU institutions, Member States and stakeholders to ensure a transparent and smooth process.”the head of the European Commission also declared.

Ursula von der Leyen recalled that, on Thursday, Uruguay and Argentina became the first countries to ratify the EU-Mercosur Agreement and that Brazil and Paraguay are expected to follow soon.

“This is such good news. Because it demonstrates the confidence and desire of our partners to take our relationship forward and make this historic agreement work. The Mercosur agreement creates a market of 720 million people. It opens up countless opportunities. It cuts billions of dollars in tariffs. It allows our small and medium-sized businesses to access markets and expand at levels they could only dream of before. And it also gives Europe a strategic first-mover advantage in a world with fierce competition and short horizons. But the first-mover advantage must materialize. In January, the European Council authorized the agreement to be applied provisionally after the first ratification by a Mercosur country.”recalled the head of the European executive.

The President of the European Commission also appreciated that the pact with “Mercosur is one of the most important trade agreements of the first half of this century”.

“It is a platform for deep political engagement with partners who see the world as we see it. And who believe in openness, partnership and good faith. Partners who understand that open and rules-based trade delivers positive results for all. Mercosur embodies the spirit in which Europe acts on the world stage. Europe is becoming stronger and more independent. Our businesses, our workers and our citizens will reap the rewards – and they should reap them as soon as possible. It's about about resilience. It's about growth and how Europe shapes its own future.”concluded the head of the European executive.

European patronage Business Europa calls for implementation “with determination and speed” of the agreement with Mercosur.

The announcement follows a call from the European trade union Business Europa, which on Friday called on the EU to start implementing “with determination and speed” trade agreement with Mercosur.

“The accelerated ratification by Argentina and Uruguay demonstrates the region's clear commitment to strengthening ties with Europe. It is now up to the European Union to respond with the same determination and move swiftly to provisionally apply the Interim Trade Agreement”the organization declared in a press release, quoted by EFE.

Business Europe mentioned that “European firms cannot afford further delays in implementing an agreement that provides clear benefits, boosts growth, improves competitiveness and strengthens supply chain resilience, while reducing dependence, especially on essential raw materials”.

The employers' association stated that “Mercosur represents a strategic and reliable partner” in order to achieve the diversification of trading partners, a goal pursued by the EU and, therefore, urged the European Commission to “proceed quickly” to the provisional application of the commercial agreement.

After Brussels and the Mercosur countries (Brazil, Argentina, Uruguay and Paraguay) signed the pact in January and after it was ratified by some Latin American states, the Commission has the legal authority to implement the agreement. This despite the fact that the European Parliament has not yet ruled on the pact and has decided to refer the EU Court of Justice for a decision on its legality. It could take up to two years for the CJEU to make a decision on this.