Finance
EU should be ready to enact Mercosur deal despite resistance, trade chief says
Published by Global Banking & Finance Review®
Posted on February 20, 2026
3 min readLast updated: February 20, 2026
Quick Summary
Šefčovič signaled the EU could provisionally apply the EU‑Mercosur deal within months despite French resistance and a court referral, aiming to accelerate tariff cuts while lawmakers await a ruling.
EU Urged to Ready Mercosur Trade Deal Despite Resistance, Trade Chief
By Philip Blenkinsop
EU’s Path to Implementing the Mercosur Agreement
NICOSIA, Feb 20 (Reuters) - The European Union should be ready to put into force its contentious free trade agreement with South America's Mercosur bloc in the coming months despite opposition from France and a legal challenge, EU trade chief Maros Sefcovic said on Friday.
Tariff Savings and Economic Impact
The deal with Argentina, Brazil, Paraguay and Uruguay could remove some 4 billion euros ($4.7 billion) of duties on EU goods exports, making it the bloc's biggest ever free trade agreement in terms of potential tariff reductions.
Political Support and Opposition
Signed in January after 25 years of negotiations, the accord has strong support from Germany and Spain, but faces opposition led by France over concerns that increased imports of cheap commodities, like beef and sugar, will harm domestic farmers.
Provisional Application vs. Court Review
The European Parliament voted last month to challenge the agreement in the bloc's top court, which could delay the deal by two years and potentially derail it. However, the European Commission could decide to apply the agreement on a provisional basis far sooner.
Sefcovic suggested on Friday that was a possibility.
Ratification Outlook in Mercosur
"When our Mercosur partners will be ready with the ratification, we should be ready as well," Sefcovic told reporters before a meeting of EU trade ministers in Cyprus.
"We expect that Argentina might be the first one to ratify. I think they're going through the decisive phase already this week," he added.
Fast-Track Approach Discussed
FAST-TRACK APPROACH
Sefcovic said the EU executive was discussing with Mercosur and EU countries, and European Parliament members, how to proceed, adding that delays were costly as the EU seeks to offset lost business due to U.S. tariffs and reduce dependence on China, notably for critical minerals.
He referred to a study by the ECIPE think-tank which estimated that the bloc sacrificed 291 billion euros in gross domestic product between 2021 and 2025 due to its failure to ratify the deal earlier.
Bernd Lange, chair of the European Parliament's trade committee, said the bloc should first ask how quickly the EU Court of Justice might be able to rule.
If six months was possible, then the agreement could be paused. If not, it might be put into force in April or May, he said.
India and Indonesia as Test Cases
Sefcovic said he would also discuss with EU ministers speeding up the implementation of free trade agreements, saying the bloc could use recently concluded deals with India and Indonesia as test cases for a fast-track approach.
Exchange Rate Context
($1 = 0.8500 euros)
(Reporting by Philip Blenkinsop;Editing by Helen Popper)
Key Takeaways
- •EU trade chief Maroš Šefčovič urged readiness to enact the EU‑Mercosur agreement within months despite opposition from France.
- •The European Parliament has referred the deal to the EU Court of Justice, potentially delaying final ratification.
- •The European Commission could provisionally apply the pact before a court ruling if member states agree.
- •Supporters say the deal would cut tariffs and diversify EU supply chains; critics fear harm to EU farmers.
- •An ECIPE study estimates significant GDP losses from past delays in ratifying the agreement.
Frequently Asked Questions about EU should be ready to enact Mercosur deal despite resistance, trade chief says
1What is the main topic?
EU trade chief Maroš Šefčovič says the EU should be ready to enact the EU‑Mercosur trade deal in the coming months despite French opposition and a legal referral to the EU Court of Justice.
2Why is the EU‑Mercosur deal facing resistance?
France and farmer groups fear increased imports of cheaper agricultural products could undercut domestic producers, and lawmakers have raised legal concerns now before the EU’s top court.
3Can the agreement take effect before a court ruling?
Yes. The European Commission can provisionally apply the deal, with member state backing, while the European Parliament awaits the Court of Justice’s opinion.
