The European Commission announced that it will commence temporary application of the Mercosur trade agreement following ratifications by Uruguay and Argentina. Commission President Ursula von der Leyen noted that Brazil and Paraguay are expected to follow suit in ratifying the agreement. However, she emphasized that this temporary application is just that—temporary—and that the agreement can only be finalized once it receives consent from the European Parliament, per EU treaties.

This landmark Mercosur agreement has come to fruition after 26 years of negotiations, paving the way for EU access to the markets of Brazil, Argentina, Paraguay, and Uruguay while eliminating tariffs on 90% of goods. Upon full implementation, it will create a substantial market area encompassing 720 million people. The deal has sparked significant concern across Europe, particularly regarding its impact on agriculture, while also being viewed as a potential boon for the industrial sector.

In Finland, the focus of discussions around the agreement has been on the potential influx of inexpensive agricultural products, raising alarms of possible consequences for local farmers. As the temporary application progresses, stakeholders in various sectors—including farming and industry—are keenly observing how these developments will unfold and affect the respective markets in the EU and member states like Finland.