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EU to 'provisionally implement' controversial Mercosur deal

Jon Shelton with AFP, dpa, Reuters
February 27, 2026

The trade deal with a South American bloc, which had been in the works for over 25 years, was formally signed in January. It nevertheless remains contentious, with bloc members like France staunchly opposed to it.

Tractors are seen parked in front of the Arc de Triomphe during a demonstration on Jan 8, 2026
Many countries and European farmers fear the Mercosur deal will hurt their interestsImage: Blondet Eliot/ABACA/abaca/picture alliance

The European Commission will "proceed with [the] provisional application" of the Mercosur trade deal with Argentina, Brazil, Paraguay and Uruguay, European Commission President Ursula von der Leyen announced on Friday.

Von der Leyen's announcement came after Uruguay and Argentina ratified the agreement on Thursday, paving the way for its provisional application.

"I've said before, when they are ready, we are ready," she said on Friday.

Brazil and Paraguay have yet to ratify the deal, but von der Leyen said they are expected to do so soon.

The push to implement Mercosur comes as US tariffs and China's hold on critical mineral supplies pushes the 27-nation EU to forge a raft of free trade deals with other nations across the world.

The European Comission's move allows companies in the EU, Uruguay and Argentina to profit from new customs rules and other perks before the agreement formally enters into force.

Mercosur: A long time coming

After 25 years of negotiations, the Mercosur deal was signed in Paraguay on January 17, with the aim of creating a free trade zone of more than 700 million people.

On January 21, the European Parliament narrowly decided to refer the agreement to the European Court of Justice (ECJ) for review before a final vote, delaying the deal's implementation.

On Friday, the commission president said: "Provisional application is by its nature provisional. The agreement can only be fully concluded once the European Parliament has given its consent."

Von der Leyen is essentially sidestepping lawmakers before the treaty goes into full force — a move that will likely prompt criticism.

"Our businesses, our workers and our citizens will reap the benefits, and they should reap them as soon as possible," she added. "This is about resilience, this is about growth, and Europe shaping its own future."

She did not take questions after delivering her statement.

Farmers and environmentalists' concerns vs. jobs and increased trade

The Mercosur agreement has sparked fierce opposition from farmers and environmentalists.

European farmers say they will be priced out of markets by cheap imports.

France, the ​EU's largest agricultural producer, has led the opposition to the deal and has unsuccessfully tried to block it.

Reacting to von der Leyen's announcement, French EU lawmaker Celine Imart accused the commission of "showing contempt" for farmers.

"The commission is sending a disastrous signal to our farmers, who are already struggling, and is further fuelling distrust of the European Union," she told the French AFP news agency.

French President Emmanuel Macron also slammed von der Leyen's announcement.

"For France, it's ​a surprise, a bad surprise, ⁠and ​for the European ​Parliament, it's disrespectful," ​Macron told ‌reporters on Friday.

Environmentalists fear increased EU demand for Mercosur agricultural products could further fuel deforestation in South America.

Opponents of the deal also claim it has been worded in a way that would allow future trade agreements to be passed without EU member state consensus.

Supporters of the deal see opportunities for the automotive sector, mechanical engineering and pharmaceuticals in one of the world's largest free trade zones.

Johann Wadephul, the foreign minister of Germany, which has a large automotive industry, called the deal "historic."

"Germany will work tirelessly to help tap the full potential of this historic agreement," he wrote in a social media post. 

EU, Mercosur sign landmark trade deal

02:08

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Edited by: Rana Taha

Jon Shelton Writer, translator and editor with DW's online news team.
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