EU Launches Provisional Mercosur Trade Deal

The European Union has begun provisional application of its long‑negotiated trade agreement with the Mercosur bloc, European Commission President Ursula von der Leyen announced. She said tariffs will start to fall immediately, companies will gain new market access, and investors will benefit from greater predictability.

The deal, negotiated for more than 25 years, is expected to create a free trade area covering over 700 million people across Europe and Latin America, cutting billions in tariffs and opening opportunities for small and medium‑sized enterprises. Von der Leyen stressed that provisional application will demonstrate tangible benefits while addressing sensitivities, providing evidence for EU institutions to conduct oversight. Despite the promises, resistance remains within member states and the European Parliament.