Overview
- The European Commission, which announced the step Monday, set May 1 for tariff cuts and quotas to begin under the pact’s trade chapter.
- Argentina, Brazil, and Uruguay completed and notified ratification before the end of March, and Paraguay is expected to notify after recently ratifying.
- Parliament’s referral to the EU Court leaves a legal review that could take up to 18 months, so only the trade pillar runs for now.
- Brussels estimates businesses will save about €4 billion a year as the EU opens more to Mercosur farm goods and Mercosur lowers duties on EU cars, machinery, and wines, with safeguards for sensitive EU agriculture.
- Benefits will roll out by sector because Mercosur must divide quotas and governments must issue implementing rules, and farm protests in France and Poland signal friction as the changes take hold.