One of the world’s largest trade deals enters into force today, linking 720 million consumers across two continents. European carmakers and machinery exporters stand to gain; farmers fear a flood of cheaper beef and poultry from South America. The deal is live, but its survival in the European Parliament is far from guaranteed.
The provisional entry into force is a rare procedural move that means the trade portions of the deal kick in immediately, without waiting for ratification by all 27 member states. Tariffs on European cars, machinery, and chemicals will begin to fall. Mercosur agricultural exports, including beef and poultry, will gain new access to European markets. The European Parliament, however, retains the final word.
Parliament’s trade chief Bernd Lange (S&D/DEU) called the deal a “game changer” at a time of rising protectionism, arguing it would open new economic opportunities even as ratification debates continue. Gabriel Mato (EPP/ESP), the committee’s standing rapporteur for Mercosur, struck a more cautious note, describing provisional application as a test that the EU must pass by delivering on its commitments, particularly for agriculture.
Gains, risks, and safeguards
The deal removes billions of euros in tariffs and opens access across a wide range of sectors. European exporters, particularly in car manufacturing and heavy machinery, stand to benefit most. Supporters also frame the agreement as a signal of EU commitment to open, rules-based trade at a moment when protectionism is gaining ground globally.
Critics are less convinced. They warn that cheaper imports could undercut European producers, above all in agriculture, where regulatory standards differ sharply between the two blocs. In February 2026, the European Parliament moved to address those fears, approving safeguard measures that would allow the temporary suspension of tariff preferences on agricultural imports if a surge were to harm EU producers.
You might be interested
Parliament’s final word
The provisional period now begins in earnest. Early results will shape the debate in Parliament, which retains the power to block full ratification. That debate may not come quickly, as the Parliament has indicated it will await the opinion of the European Court of Justice on whether the agreement complies with EU treaties.
The EU must rise to the occasion and deliver on all its commitments in the agreement.
— Gabriel Mato, standing rapporteur for Mercosur, European Parliament (EPP/ESP)
“The EU must rise to the occasion and deliver on all its commitments in the agreement, ensuring fair competition and effective support for Europe’s most sensitive sectors, particularly agriculture,” said Gabriel Mato (EPP/ESP), the committee’s standing rapporteur for Mercosur. He described provisional application as a crucial test of the deal’s real-world impact.
For Brussels, the stakes extend beyond trade. The deal is central to the EU’s strategy of diversifying its partnerships and pushing back against a global tide of protectionism. Whether it survives the political test in Strasbourg may say as much about the EU’s ambitions as about its trading relationships.
Bigger than a trade deal
The coming months will test more than tariff schedules. If the deal delivers for exporters without devastating farmers, Parliament may yet ratify it. If it does not, Brussels will face questions that go well beyond Mercosur. The EU has staked part of its identity on being a champion of open, rules-based trade. That bet is now being called.
