EU–Mercosur trade deal comes into force on interim basis

A controversial free trade agreement between the European Union and the South American bloc Mercosur has begun provisional application as of May 1.

The agreement is the result of negotiations that lasted around 25 years, Caliber.Az reports, citing foreign media.

It provides for the gradual reduction of trade barriers and tariffs, as well as expanded access to markets for goods and services.

According to the European Commission, the deal creates a combined market of roughly 720 million people and could deliver tariff savings worth billions of euros.

In Germany, the automotive industry, mechanical engineering and pharmaceuticals sectors are expected to benefit the most.

EU officials also view the agreement as a step toward strengthening open trade amid rising protectionist trends, including US policies under Donald Trump.

At the same time, the deal has sparked significant debate within the EU.

Critics warn it could lead to lower EU standards in environmental protection, consumer rights and animal welfare.

European farmers in particular have voiced concern over increased competition and downward pressure on prices.

To mitigate these risks, additional safeguard mechanisms have been included in the agreement, allowing for market monitoring and the possible introduction of restrictions on certain sensitive goods, including beef, poultry, citrus fruits and sugar.

Despite these measures, there have been calls in the European Parliament to refer the agreement to the Court of Justice of the European Union for legal review.

As a result, the deal can only be applied on a provisional basis pending final approval by the European Parliament.

By Bakhtiyar Abbasov