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EU–Mercosur Free Trade Agreement Set for Provisional Entry into Force in March

Brussels: The European Union’s long-debated free trade agreement with the South American Mercosur bloc is expected to enter into provisional effect in March, according to senior EU officials, despite ongoing legal and political opposition.

The move follows a decision by the European Court of Justice (ECJ) to allow the agreement to be applied on a temporary basis while legal challenges proceed. Earlier this week, EU lawmakers formally referred the pact with Brazil, Argentina, Paraguay and Uruguay to the ECJ, a process that is expected to take at least two years to conclude.

An EU diplomat said the agreement can be provisionally implemented once ratified by any Mercosur member state, with Paraguay expected to complete ratification in March. If implemented, the EU–Mercosur pact would become the largest trade agreement ever concluded by the European Union.

The deal was formally signed last weekend after 25 years of negotiations, a delay that has drawn criticism from European exporters, particularly in Germany. Supporters, including business groups, argue the agreement is vital to offset losses from US tariffs and to reduce Europe’s economic dependence on China.

However, the agreement has faced strong opposition, led by France, which argues it could undermine European farmers by increasing imports of lower-cost beef, sugar and poultry. Farmers have staged major protests in Paris and Ireland, warning of unfair competition and threats to agricultural livelihoods.

The European Commission said it will continue consultations with EU member states and the European Parliament before deciding on the next steps regarding the agreement’s implementation.

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