After more than 25 years of negotiations, the trade deal between the European Union and Mercosur countries — Argentina, Brazil, Paraguay and Uruguay — took provisional effect on Friday.
European Commission President Ursula von der Leyen pushed ahead with provisional application despite a legal challenge before the Court of Justice of the European Union, effectively sidestepping a parliamentary vote on the deal's full ratification.
"Provisional application will show the agreement's tangible benefits," von der Leyen wrote on X.
"And how legitimate sensitives have been addressed."
The EU chief is expected to hold a video conference on Friday to celebrate the agreement with leaders of the Mercosur nations.
The agreement eliminates tariffs on a majority of trade between the two sides, therefore creating a free-trade zone of more than 700 million people between the EU and Mercosur countries.
On Thursday, the EU Chief described the deal as "good news for EU businesses of all sizes, good news for our consumers and good news for our farmers, who will gain valuable new export opportunities, with full protection for sensitive sectors."
Opposition to the deal
The deal, however, has not been equally welcomed by everyone. While supporters believe it unlocks new markets vital to the economy, critics warn it can weaken environmental standards and regulations and damage the EU's agricultural sector.
The European Commission signed the deal on 17 January after securing support from a majority of member states. Some member states, however, remained against the deal, with France at the forefront of the opposition.
Many EU farmers also expressed their discontent. Leading up to the signing of the deal, they took to the streets with their tractors to protest what they considered unfair competition from Mercosur imports.
But at the European Parliament, opponents secured a majority to refer the agreement to the Court of Justice of the European Union to assess its legality. The deal will be halted if the European body rules against it.
Under pressure by supporters of the deal — such as Germany and Spain — which are eager to access new markets amid rising geoeconomic tensions, von der Leyen thus opted for the provisional application.
The Commission, however, could only do so after at least one Mercosur country ratified and notified the agreement.
Brazil, Argentina and Uruguay have already done so, with Paraguay expected to follow.
"Nothing better than believing in the exercise of democracy, in multilateralism and in cordial relations between nations,” President Luiz Inácio Lula da Silva said in a ceremony to celebrate the development in Brasilia.
Bolivia, the newest Mercosur member, was not part of the negoiations but can join the agreement in the coming years.
