EU-Mercosur Trade Deal Enters Provisional Application — 700 Million People, 25 Years in Making

The EU-Mercosur Interim Trade Agreement officially entered into provisional application on May 1, 2026, marking the most significant EU trade policy milestone in a generation. After more than 25 years of intermittent negotiations and the final text agreed in December 2024, the deal covers over 700 million people — the world's largest trade deal by population. Immediate benefits include tariff elimination on 91% of EU goods exports to Mercosur (Argentina, Brazil, Uruguay, Paraguay) and protection of 344 EU Geographical Indications. EU exporters of cars, pharmaceuticals, wine, spirits, and olive oil gain immediate competitive advantages over US and Chinese rivals in the South American market. France had led opposition citing deforestation and agricultural competition; full ratification by EU member state parliaments, plus a CJEU opinion, was expected to take 2–3 more years.