EU to temporarily apply Mercosur trade deal

The European Union plans to temporarily apply the trade agreement with Mercosur even before its full approval to secure a first-mover advantage in the market.

European Commission President Ursula von der Leyen said that Brussels is ready to act as soon as its South American partners are ready. According to available data, the agreement with Argentina, Brazil, Paraguay and Uruguay could eliminate tariffs on EU exports worth around €4 billion.

Although the European Parliament will ultimately have to approve the document, MEPs have already announced legal action that could delay the process by up to two years.

Germany and Spain support the agreement, seeing it as a response to US tariffs and a way to reduce dependence on China. France, however, is opposed and warns of negative impacts on domestic farmers.

(reuters, pir)