Uruguay is the first country to have this Mercosur free trade agreement ratified with the European Union. The South American country’s House of Representatives approved the agreement, paving the way for the EU free to apply these provisionally. The Senate had already approved it the day before. According to its own information, the EU Commission has not yet decided whether it wants to put the agreement into force provisionally – i.e. before formal ratification in the European Parliament.
Ratification of the agreement by Argentina and Brazil is also expected in the coming days.
The EU trade agreement with Brazil, Argentina, Paraguay and Uruguay should create one of the world’s largest free trade zones and eliminate most tariffs on both sides. While Europeans export cars and chemical products across the Atlantic, among other things, the Mercosur countries mainly deliver agricultural products and raw materials to Europe.
Review by the European Court of Justice could cause delays
Provisional application would mean that tariffs between Uruguay and the EU would cease before all parties have ratified the agreement. This could avoid a delay caused by the members of the European Parliament: At the end of January, they voted with a narrow majority to submit the agreement to the European Court of Justice (ECJ). to be submitted for a legal examination – although the majority of member states had previously shown their approval. The exam can take several months or even years. It is also questionable whether the agreement can reach a majority after being examined by the ECJ.
The possibility of provisional application is fundamentally provided for in the agreement; the decision lies with the European Commission in Brussels. According to her own statements, she wants to coordinate with the 27 EU countries and the European Parliament.
