The EU Commission, led by President Ursula von der Leyen, has announced the imminent application of the free trade agreement between the European Union and the South American Mercosur countries, which includes Uruguay and Argentina. This decision comes even though the agreement is still pending a legal review by the European Court of Justice, which had been requested by the European Parliament due to concerns over environmental issues and other implications of the deal. The ratification by Uruguay and Argentina has enabled the Commission to move forward with the preliminary application.

The preliminary application of the agreement will permit companies in the EU and those from Uruguay and Argentina to benefit from new tariff rules and other advantages even before the formal implementation of the agreement. This is particularly significant as formal approval by the European Parliament could take several months or longer. The initial ratifications from the Mercosur states signify a commitment to expanding trade relations, which may influence future negotiations and partnerships between the EU and Latin America.

This move by the EU Commission reflects an ongoing effort to strengthen economic ties with the Mercosur countries, despite the political and environmental controversies surrounding the agreement. The ability of businesses to capitalize on early benefits might stir further discussions within the EU, especially regarding standards, sustainability, and compliance with the legal frameworks that might affect future trade agreements. The decisions made now could have lasting implications for EU-Mercosur relations in the coming years.