The EU activates the agreement with Mercosur: provisional application from May 1

Brussels gives green light to the treaty despite legal doubts and accelerates its entry into force to eliminate tariffs and strengthen bilateral trade

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There is already a date for the entry into force of the free trade agreement between the Mercosur bloc and the European Union. The Commission would have notified this Monday Argentina, Brazil, Paraguay and Uruguay of its provisional application starting May 1.

Thus, Brussels completes the last necessary step for the implementation of the new transatlantic relationship by sending its "verbal note" to Paraguay, which currently holds the presidency of the alliance. This step guarantees the elimination of tariffs on certain products from that same day, "establishing predictable rules for trade and investment".

In the cabinet of President Ursula von der Leyen they celebrate that community businesses, consumers, and farmers will be able to start to "benefit from the agreement immediately", while the sectors of the Union's economy "remain fully protected by robust safeguards".

Objective: activate the economic potential

"The priority now is to convert this agreement into concrete results, providing community exporters with the platform they need to take advantage of new opportunities for trade, growth, and employment," affirmed the European trade chief, Maros Sefcovic.

In Brussels they hope that the agreement "reaches its maximum potential, strengthening our economy and reinforcing our position in world trade".

An unprecedented movement in the European Parliament

In January, the European Parliament took an unprecedented step until now within the European Union. A majority of 334 MEPs approved the request to seek an opinion from the Court of Justice of the European Union (CJEU) on whether the text of the EU-Mercosur agreement is compatible with the Fundamental Treaties of the Union.

This decision would delay its ratification by the European Parliament, but the game had not ended there and the European Commission kept the ace of provisional application up its sleeve. 

The vote on the two petitions to consult the high court on the Mercosur pact —one presented by the Left and another by the Conservatives— kept all scenarios open until the last vote.

However, the Community Executive foresaw that this appeal would go ahead, according to what Demócrata has learned. For this reason, the legal services are already working on how to activate the text despite the decision adopted by Strasbourg. The answer on how to do it? In the fundamental rules of the European project.

Economic impact in Spain

For Spain, the treaty entails economic growth opportunities, with an estimated GDP increase of 0.23% and more than 22,000 long-term jobs. The agreement boosts Spanish exports to the bloc (+36.8%) and favors investment and public procurement, especially in advanced services.

Although agriculture generates reluctance, the treaty includes safeguards and protection of geographical indications, combining economic and strategic benefits for Spain and the EU.

However, in a geopolitical context marked by multipolar tensions, this decision could mark a rift in the relations between the European co-legislators. Members of Parliament recognize that it could be interpreted as a "lack of respect" for the legitimacy and sovereignty of the parliamentary chamber.

The legal path that Brussels was studying

To circumvent the obstacle driven by the groups most skewed to one side and the other of Parliament, as community sources explain to Demócrata, the Commission can make the decision to apply the agreement provisionally until the Court issues its position.

The article 218, paragraph 5, of the Treaties establishes that the Council, at the proposal of the Community Executive, may decide on the provisional application of an international treaty or some of its parts. As the Council already ratified the agreement in January, the Commission only had to take this additional step.

From its first article, the text makes clear that it is not just about trade. Respect for human rights, fundamental freedoms, and the rule of law is defined as an “essential element” of the agreement, which even allows for its suspension if serious and systematic violations occur. This approach provides the treaty with a strong political clause, similar to that which the EU uses in its agreements with strategic third countries. The logic is clear: privileged access to the European market is accompanied by demanding political and legal commitments.

Complex and Permanent Institutional Architecture

One of the most technical —and least visible— aspects of the agreement is its sophisticated institutional framework, designed to guarantee its application and evolution over time. The highest body is the EU–Mercosur Joint Council, which will meet at ministerial level at least every two years and will have the capacity to adopt binding decisions, interpret the agreement, and resolve political or commercial conflicts.

Below it is a Joint Committee, responsible for daily monitoring, and a network of specialized subcommittees. Also noteworthy is the creation of a Joint Parliamentary Committee, which will connect the European Parliament with the Mercosur Parliament, and several formal mechanisms for the participation of civil society. The agreement institutionalizes the permanent political dialogue between both regions.

Although the commercial pillar is developed in part III of the treaty, the general text already sets key principles. Trade liberalization is framed within the rules of the World Trade Organization (WTO) and explicitly recognizes the right of States to regulate in areas such as public health, the environment, education or culture. The agreement also protects sensitive sectors through transitional periods, safeguards and exceptions, and pays special attention to SMEs, one of the groups called to benefit from the new framework of legal predictability.

Sustainable development as a cross-cutting axis

One of the most relevant elements of the agreement is the explicit incorporation of the Sustainable Development Goals (SDGs) and the Paris Agreement on climate as mandatory reference frameworks.

The treaty commits the parties to promote trade that does not degrade the environment or labor rights, and establishes active cooperation in:

  • Environmental protection

  • Sustainable production and consumption

  • Fight against poverty and inequality

  • Climate governance

Although it does not introduce automatic sanctions in this area, it does create monitoring, dialogue, and political pressure mechanisms, with civil society participation.

Security, justice and fight against crime

Beyond trade, the agreement dedicates full chapters to security cooperation, an especially sensitive area. EU and Mercosur commit to working jointly against:

  • Terrorism

  • Drug trafficking

  • Transnational organized crime

  • Money laundering

  • Human trafficking

Judicial cooperation is also strengthened, both in civil and criminal matters, and commitments are aligned with international standards such as those of the GAFI. A key point is the protection of personal data, recognized as a fundamental right.

Migration and human rights

The text explicitly addresses the management of migratory flows, from an approach of co-responsibility and respect for human rights. It includes commitments on:

  • Readmission of nationals in irregular status

  • Protection of refugees

  • Fight against trafficking and smuggling of migrants

  • Regular, safe, and orderly migration

All of this framed within respect for the principle of non-refoulement and international asylum conventions. The agreement is also a geopolitical declaration. Both parties commit to coordinating positions in multilateral forums such as the UN, to strengthening the rules-based international system, and to defending a global order more just and democratic. Emerging areas are included such as cybersecurity, internet governance or the non-proliferation of weapons of mass destruction.

Much more than a trade treaty

The EU–Mercosur Association Agreement is, in essence, a new generation treaty. It not only regulates economic exchanges, but also establishes a stable political relationship, with shared values, permanent institutions, and a common agenda for the coming decades.

Its ratification and effective application will mark a before and after in relations between Europe and South America. But they will also open intense debates —especially in Europe— about agriculture, environment, and regulatory sovereignty.

The fine print makes it clear that we are not dealing with a simple commercial agreement, but rather with a long-term strategic alliance.