EU Backs Signing of Mercosur Pact, Weighs Provisional Application

Overview

• EU governments authorized the deal’s signature on Jan. 9, with a majority in favor and France, Hungary, Poland, Ireland and Austria opposed.
• The European Commission says provisional application is legally possible before full ratification, with a Parliament vote expected between February and April.
• French farm unions stepped up actions by inspecting import trucks at ports, blocking fuel and grain facilities, and driving tractors into Paris.
• Brazilian leaders welcomed the move, citing expanded market access and investment potential, while Environment Minister Marina Silva pointed to sustainability and deforestation safeguards.
• The agreement phases out tariffs on roughly 90% of trade over up to 15 years, immediately eliminates some industrial duties, and includes consultations, optional mediation and public arbitration for disputes.