European Commission President Ursula von der Leyen, left, speaks next to Brazilian President Luiz Inacio Lula da Silva in Rio de Janeiro, Brazil, Friday, January 16, 2026. BRUNA PRADO/AP
The EU said Monday, March 23, a free trade agreement with South American bloc Mercosur will provisionally enter into force on May 1, despite a pending court ruling on its legality. The mammoth deal to eliminate tariffs on more than 90% of trade between the two blocs has proven divisive in Europe, with France leading opposition over concerns some of its farmers will be worse off because of it. But Brussels, backed by a majority of EU countries, has ploughed ahead as it pushes to diversify trade in the face of challenges from the United States and China.
"Today is an important step in demonstrating our credibility as a major trading partner," EU trade chief Maros Sefcovic said. "The priority now is turning this EU-Mercosur agreement into concrete outcomes, giving EU exporters the platform they need to seize new opportunities for trade, growth and jobs."
The move comes as Paraguay ratified the deal last week, becoming the last Mercosur member to do so after Argentina, Brazil and Uruguay.
"Provisional application ensures the removal of tariffs on certain products as of day one, creating predictable rules for trade and investment," the European Commission, in charge of EU trade policy, said Monday. It added it had notified Mercosur partners. "EU businesses, consumers and farmers can thus start reaping the benefits of the deal immediately."
