EU provisonally applies Mercosur after two countries ratify deal

EU President says provisional application is exactly that - provisional

THE EU is to proceed with the ‘provisional application’ of the Mercosur Agreement.

EU President Ursula von der Lyon made the announcement just over two hours ago.

This latest step in the European Union’s full adaptation of the trade deal follows ratification of the EU-Mercosur Agreement by Uruguay and Argentina yesterday (Thursday).

Brazil and Paraguay are expected to follow soon.

Describing the progress in Uruguay and Argentina as “such good news” Ursula von der Lyon said the official steps taken in those south American countries yesterday “shows the trust and eagerness of our partners to take our relationship forward and to get this landmark agreement to work.”

The EU-Mercosur trade deal creates a trading zone of 700 million people altogether. It is agreed between the EU and the four countries of the south American trading bloc. The deal aims to boost Europe’s economy and global partnerships by removing trade barriers.

Farmers here, France and other EU countries, however, fear the trade deal will flood the European market with lower quality food products, including Brazilian beef, that can be bought cheaper but are not subject to the same food safety standards and regulation as farmers in the EU.

In January, the European Council empowered the Commission to provisionally apply the Agreement as from the first ratification by one Mercosur country.

Shortly after, the deal was referred to the EU’s top court, and a decision on its legality is still awaited.

In the meantime, the EU President and members of the Mercosur trade bloc are progressing the deal’s full ratification.

Ursula von der Lyon was keen to stress that provisional application' is, by its nature – provisional. “It is right there in the name,” the president said, “In line with the EU Treaties, the Agreement can only be fully concluded once the European Parliament has given its consent.”

Irish farmers organisations have been opposing Mercosur for two decades.

In a statement, President of the IFA, Francie Gorman, said: "Despite what the EU Commission has frequently said, the Brazilian authorities have not managed to get their house in order.

"The issue we had with the deal then, particularly around traceability and lack of standards, has not gone away," he stated.