European Commission President Ursula von der Leyen announced that the European Union will proceed with the provisional implementation of the Mercosur free trade agreement, despite it not being fully ratified due to a blockade by the European Parliament in January. This announcement follows extensive discussions held by von der Leyen with EU member states and European Parliament members about the agreement.

The context of this decision stems from a recent endorsement by Uruguay, which became the first country to ratify the agreement, shortly followed by Argentina. Brazil and Paraguay are also in the process of ratifying the agreement, which aims to enhance trade relations between the EU and the four Latin American countries involved in Mercosur. The provisional implementation is intended to facilitate economic ties while still addressing outstanding concerns from the European Parliament regarding environmental and social standards.

Von der Leyen's statement marks a significant step towards realizing the much-anticipated trade deal, which has faced scrutiny and delays. The provisional nature of the agreement reflects the ongoing challenges within the EU concerning trade deals, especially related to sustainability and compliance with EU standards. This move may set a precedent for future negotiations and raises questions about the balance between economic interests and regulatory frameworks in international trade.