EU begins provisional rollout of South America trade deal, touts immediate gains

The European Union on Friday began provisional application of its long-awaited trade agreement with the Mercosur bloc, the European Commission chief said, describing the move as the start of "real and visible" benefits.

"Today, the EU-Mercosur agreement begins to apply provisionally. The benefits are real and visible as of now," Ursula von der Leyen said on US social media platform X.

She also said tariffs would begin to fall, companies would gain access to new markets, and investors would benefit from greater predictability.

"Provisional application will show the agreement's tangible benefits, and how legitimate sensitivities have been addressed," she added.

Von der Leyen further said that the process would provide "the fullest evidence-based picture" for the European Parliament and member states to carry out their oversight.

Negotiated for more than 25 years, the EU-Mercosur agreement is expected to create a free trade area spanning more than 700 million people between Europe and Latin America, cutting billions of euros in tariffs and opening new market opportunities, particularly for small and medium-sized enterprises.

Despite these economic promises, the agreement has encountered significant resistance within EU member states as well as the European Parliament.