Its with South American countries that belong to it is likely to be implemented on a temporary basis from March, despite an appeal by the Union’s highest court, an EU diplomat told Reuters.
The possibility of bypassing the appeal is open
The blow dealt by MEPs to the controversial trade deal with Brazil, Argentina, Paraguay and Uruguay, by referring it to the European Court of Justice, may succeed in delaying its full implementation by at least two years.
“The EU-Mercosur deal will be provisionally implemented once it is ratified by the first Mercosur country, and Paraguay will probably do that in March,” an EU diplomat told Reuters.
The background on a European level
The EU signed its biggest trade deal with Mercosur members on Saturday after 25 years of negotiations, and the delay has upset many German businesses as well as one of its main backers, Chancellor Friedrich Merz.
Supporters of the deal stress that it is important to offset the damage caused by US tariffs and to reduce dependence on China.
Critics, led by France, argue it will increase imports of cheap beef, sugar and poultry, hurting domestic farmers. For this reason, for months, the agricultural world of France has been carrying out mass mobilizations and demonstrations in French cities, with hundreds of tractors blocking streets in Paris and surrounding monuments such as the Eiffel Tower.
Fierce reactions in France against the possibility of bypassing
The head of the French sugar beet producers’ union CGB rejected any possibility of a temporary implementation of the agreement. “That would be a violation of democracy. It’s unacceptable!” said Frank Sander.
Applying the deal on a temporary basis pending a court ruling and parliamentary approval could prove politically difficult due to a possible backlash, while the European Parliament would retain the right to cancel it later.
“If the President of the European Commission, Ursula von der Leyen, and the EU were to proceed with a provisional application, given the vote that took place in Strasbourg, this would constitute a form of violation of democracy,” said French government spokeswoman Mont Bresson.
Mertz says Germany will not stop
The European Commission has said it will work with EU governments and lawmakers before deciding on next steps.
EU leaders are meeting in Brussels to discuss transatlantic relations amid the Trump administration’s moves on Greenland.
Regarding Mercosur, Friedrich Merz said speaking at the World Economic Forum in Davos that he regretted the European Parliament’s decision, before adding: “But rest assured: We will not stop. The agreement with Mercosur is fair and balanced. There is no alternative if we want higher growth in Europe.”
