ISTANBUL

The European Commission on Monday announced that the EU’s trade agreement with Mercosur -- comprising Argentina, Brazil, Paraguay and Uruguay -- will be provisionally applied starting May 1.

"The European Union has today notified to the Mercosur countries the instrument of provisional application for the EU-Mercosur interim Trade Agreement (iTA). By sending its ‘note verbale’ to Paraguay, the legal guardian of the Mercosur treaties, the European Commission has taken the final procedural step required for provisional application, in line with the Council Decision of 9 January," a commission statement said.

It noted that the deal will apply provisionally from May 1 between the EU and all Mercosur countries that “complete their ratification procedures and notified the EU before the end of March."

"Provisional application ensures the removal of tariffs on certain products as of day one, creating predictable rules for trade and investment. EU businesses, consumers and farmers can thus start reaping the benefits of the deal immediately, while sensitive sectors of the EU economy are fully protected by robust safeguards," the commission further explained.

In late February, European Commission President Ursula von der Leyen announced that the EU was moving ahead with the provisional application of its trade agreement with the South American bloc, despite objections from the European Parliament.

Negotiated for more than 25 years, the EU-Mercosur agreement would create a free-trade area spanning more than 700 million people between Europe and Latin America, cutting billions of euros in tariffs and opening new market opportunities, particularly for small and medium-sized enterprises.

Despite these economic promises, the agreement has encountered significant resistance within the EU member states, as well as the European Parliament.