The EU-Mercosur deal was signed in Paraguay in January.
A landmark trade agreement between the European Union and South America’s Mercosur has provisionally entered into force, marking a major step in strengthening transatlantic economic ties.
The deal, finalised after 25 years of negotiations, establishes one of the world’s largest free trade areas, covering approximately 720 million people and an estimated combined economic output of $22 trillion.
Signed in January, the agreement seeks to eliminate tariffs on over 90 percent of goods traded between the two regions. It is expected to boost European exports such as automobiles, wine, and dairy products, while facilitating increased access for South American agricultural goods, including beef, poultry, sugar, rice, honey, and soybeans.
However, the implementation remains provisional as it faces legal challenges within the EU. Critics argue that Ursula von der Leyen bypassed parliamentary procedures in advancing the agreement. A negative ruling by European judicial authorities could halt its enforcement.
European Commission President von der Leyen described the pact as a win for businesses, consumers, and farmers, highlighting new export opportunities while pledging safeguards for sensitive sectors.
The agreement has also been framed as a reaffirmation of multilateral cooperation. Luiz Inácio Lula da Silva endorsed the deal, positioning it as a countermeasure to protectionist trade policies and a commitment to global economic collaboration.
Despite its economic promise, the pact has drawn criticism from European farmers and environmental groups, who fear increased competition and potential environmental impacts, including deforestation.
