Ursula von der Leyen, the President of the European Commission, announced on Friday morning that the long-anticipated EU-Mercosur free trade agreement will go into provisional effect, regardless of the legal review mandated by the European Parliament in the previous month. This statement follows the ratification of the treaty by the parliaments of Uruguay and Argentina. In Brazil, the agreement has already passed through the Chamber of Deputies and is currently pending approval in the Senate, where ongoing negotiations between the government and ruralist representatives are focused on securing safeguards for the country's agribusiness sector, akin to measures taken in Europe.

The timing of von der Leyen's announcement is significant, as it highlights the shifting dynamics within the EU regarding the free trade deal. Germany and Spain, which pushed for immediate implementation, emerged victorious in recent discussions in Brussels. Meanwhile, France and Poland—two of the largest agricultural producers in Europe and key opponents of the agreement—are gearing up to announce additional legal actions against the deal. This reflects an ongoing tension within the EU regarding agricultural policies and trade agreements, particularly as they pertain to protecting domestic farmers from foreign competition.

The EU-Mercosur agreement, which has been under negotiation since 1999, aims to create the largest common market in the world. Its approval marks a significant step in deepening trade relations between the EU and South American countries, potentially reshaping economic interactions on a global scale. However, the deal's future remains uncertain due to the internal political battles in Europe and the legal challenges ahead, which could affect its implementation and the anticipated benefits for industries involved in the new trade landscape.