Germany Welcomes Mercosur Deal, Pledges to Maximize Its Benefits

German Foreign Minister Johann Wadephul on Friday welcomed the European Commission’s decision to begin the provisional application of the EU-Mercosur trade agreement. He stated that “this is the hour of Europe” and assured that “Germany will work tirelessly to help tap the full potential of this historic agreement.”

“This is the hour of Europe: With the European Commission provisionally applying the EU-Mercosur FTA, companies & people from both continents can finally benefit from more prosperity & growth. Germany will work tirelessly to help tap the full potential of this historic agreement,”

Wadephul wrote on X.

Provisional Implementation

Germany’s position differs from that of France. French Minister of Agriculture Annie Genevard said on Friday that the Commission’s decision is highly detrimental. In her view, respect for the European Parliament’s decision should have prevailed.

The EU-Mercosur trade agreement, signed on January 17, introduces tariff preferences for exporters of products such as beef, poultry, dairy, sugar, and ethanol from Argentina, Brazil, Uruguay, and Paraguay. In return, the markets of these countries will open to European industry.

Under EU treaties, the agreement can be fully concluded only after receiving the consent of the European Parliament. The Parliament has, however, filed a complaint with the Court of Justice of the European Union regarding the Mercosur agreement. Nevertheless, the European Commission had the right to decide on its provisional implementation after ratification by at least one Mercosur member state. The Commission exercised this right after Uruguay’s parliament became the first to ratify the agreement on Thursday.

Removal of Tariffs and Trade Barriers

The provisional application of the agreement means that the trade-related provisions, falling within the European Commission’s competence, begin to apply before the agreement completes the full ratification procedure and formally enters into force. In practice, this results in the immediate removal of tariffs and trade barriers. Other matters, such as investment protection, will await full ratification.

It is worth recalling that a growth hormone prohibited in the EU was recently detected in Brazilian beef. Polish farmers, among others, have protested against the EU-Mercosur agreement, pointing to concerns about the questionable quality of products from South America and the threat to Polish agriculture, which may struggle to withstand unequal competition.

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