Von der Leyen bypasses the European Parliament and announces the immediate implementation of the Mercosur agreement.

BrusselsEuropean Commission President Ursula von der Leyen has bypassed the European Parliament and announced on Friday the immediate and temporary implementation of the European Union's trade agreement with Mercosur (comprising Argentina, Brazil, Uruguay, and Paraguay). The announcement came just after Uruguay and Argentina ratified the agreements in their respective parliaments, and a few days before Brazil and Paraguay are expected to give their final approval.

The head of the EU executive has acted on her own initiative without the backing of the European Parliament, which has brought the trade agreement The agreement is currently before the Court of Justice of the European Union (CJEU) and has not yet received final approval. In fact, the main parliamentary groups had hoped that Von der Leyen would wait for the approval of the European Parliament before activating the pact. However, this is a temporary measure, and if the European Court of Justice or the European Parliament were to rule on the trade agreement, it would cease to be in force.

Von der Leyen has admitted that she has "intensely discussed" the implementation of the EU-Mercosur trade agreement with the European Parliament and member states "during the last few weeks." The parliamentary majority rejects the immediate implementation of the pact, in line with some member states, such as France and Poland, among others. However, the position of Germany and Spain, two of the countries that have lobbied hardest in favor, has prevailed and ultimately won. "The European Commission will now proceed to activate the provisional application," announced the President of the European Commission in a statement lasting just three minutes, during which she did not take questions from the press. The Spanish government also welcomed Von der Leyen's announcement on Friday. "In an uncertain world, Europe cannot afford to fall behind. The Mercosur agreement is a major step in the EU's roadmap to become more autonomous and resilient," said Spanish Economy Minister Carlos Cuerpo.

The head of the European Commission admitted that the Mercosur agreement is currently "temporary" because she has no other option until the European Parliament gives its approval. "The agreement can only be fully concluded once the European Parliament has given its consent," the German leader said. And the approval of the European Parliament is not expected anytime soon. Last month, it decided to take the trade agreement to the Court of Justice of the European Union (CJEU), considering that it violates the EU Treaties, and the Luxembourg court usually takes between a year and a half and two years to issue a verdict. Therefore, everything indicates that, at the very least, it will not come into full force for at least another two years.

European Autonomy

Von der Leyen took the opportunity to once again defend the controversial EU-Mercosur trade agreement, which has sparked protests from farmers across the bloc. Negotiations for the pact began nearly 25 years ago, and Donald Trump's return as US president and his constant threats against European partners revived it with renewed vigor. In fact, the President of the European Commission championed it as a trade agreement that makes "Europe stronger and more independent."

The immediate implementation of this pact also comes at a time when the European Union is seeking new allies amidst a crisis in transatlantic relations, Russian expansionism, and the growing threat it perceives from China, particularly in the trade arena. In this context, the EU signed a trade agreement with India earlier this year, which EU leaders described as the "largest in history."

A market of 780 billion people

Von der Leyen also asserted that this is the largest free trade agreement the EU has ever signed: it will create a single market of over 780 million people, and Brussels estimates it will save Europeans around €4 billion in tariffs. However, the EU-Mercosur agreement does not benefit or harm everyone equally. Livestock farming stands out among the sectors most threatened, while there are advantages for olive oil and Catalan wines. Although EU farmers and ranchers remain opposed to the agreement, several industries, especially the automotive sector, support it. In fact, this is one of the main reasons why Germany has lobbied so hard for the Mercosur agreement.