The European Union starts its long-delayed free trade deal with Mercosur on May 1, despite political and legal fights

BySAM MCNEIL Associated Press

BRUSSELS — A landmark free trade deal between the European Union and four South American countries will begin on May 1 after more than a quarter-century of negotiations and new global economic uncertainty unleashed by tariffs, critical mineral controls and the war in Iran.

The European Commission said Monday that the start date for the EU-Mercosur free trade deal was triggered by Brussels receiving a “note verbale” from Paraguay that it had approved the deal, which is a key part of the 27-nation EU’s strategy to slash economic dependencies on China and the United States.

Parliaments in Uruguay, Brazil, Paraguay and Argentina have ratified the deal that links more than 700 million people and accounts for 25% of global gross domestic product. Bolivia, the newest Mercosur member, didn’t participate in negotiations but will be able to join the deal in the coming years.

“The priority now is turning this EU-Mercosur agreement into concrete outcomes, giving EU exporters the platform they need to seize new opportunities for trade, growth and jobs,” said European trade commissioner Maroš Šefčovič.

Fierce opposition by farmers and environmentalists delayed the deal in December. It then hit another snag after EU lawmakers voted to send the deal to the bloc’s judiciary. The EU executive responded by saying it would provisionally enact the deal — effectively sidestepping the European Parliament.

That means trade will begin in May and halt only if the European Court of Justice rules against it.

French President Emmanuel Macron called that move “a bad surprise.” France and Poland had led a campaign to halt or temper the deal with clauses protecting consumers and agricultural producers.

European Commission President Ursula von der Leyen has shrugged off such criticism of a deal she describes as vital for the EU’s survival in a newly disordered world.

“This is about resilience, this is about growth, and Europe shaping its own future,” she told a news conference in February. Recently, she has not taken questions about the issue.

Von der Leyen is in Australia this week for talks aimed at a potential free trade deal, defense cooperation and critical mineral supplies.

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