Overview
- The commercial chapter, which took effect Friday, starts cutting or scrapping tariffs on EU exports such as cars, pharmaceuticals and wine.
- In return, the EU opens managed quotas and easier entry for Mercosur farm goods including beef, sugar, rice, honey and soy, which many European farmers say will undercut them.
- Final ratification is paused because the European Parliament asked the EU Court of Justice to review the pact, a process expected to take about 12 to 18 months.
- Only the trade provisions apply for now, while the agreement’s political and cooperation parts will wait for a court ruling and a subsequent Parliament vote.
- EU leaders tout access to a market of more than 700 million people, yet France and farm groups lead protests as critics warn that some promised safeguards are not written into the signed text.