The European Union has decided to temporarily apply the Mercosur agreement, which aligns it with several South American countries, according to Commission President Ursula von der Leyen. This decision comes despite the European Parliament postponing the agreement's ratification earlier in January, due to demands from agricultural lobbyists and environmental organizations. These groups have raised concerns regarding the potential negative impacts of the agreement on local agriculture and the environment, particularly in relation to climate change and the preservation of tropical rainforests.

Farmers fear that the influx of cheaper South American products could threaten their livelihoods, as European agriculture is already vulnerable to market fluctuations. Environmental advocates are also on high alert, urging that the agreement must not compromise ecological safeguards that are essential for combating climate change. The EU has sought a legal opinion from the European Court of Justice regarding the compatibility of the agreement with EU treaties, reflecting the seriousness of public and political concerns surrounding the deal.

Supporters of the agreement, including Germany, argue that it is crucial for mitigating losses caused by tariffs imposed by the United States, as well as balancing the European market's dependence on China for critical minerals. The implementation of the Mercosur agreement is seen as a significant step in strengthening ties with South America, but it remains to be seen how well these economic benefits can be reconciled with the apprehensions of farmers and environmental groups in Europe.