EU Commission Provisional Application of Mercosur Trade Deal Sparks Internal Political Rift

On February 27, 2026, the European Commission announced it would begin the provisional application of the long-negotiated EU-Mercosur free trade agreement without final approval from the European Parliament. The pact, negotiated between the European Union and the South American Mercosur bloc — encompassing Argentina, Brazil, Paraguay, and Uruguay — aims to create one of the world’s largest free trade zones, covering more than 700 million people.

European Commission President Ursula von der Leyen said that provisional implementation would allow immediate tariff reductions and expanded market access, boosting EU exports and strategic autonomy. However, the move bypassed the usual parliamentary ratification process and triggered strong criticism from several member states, notably France, whose president labeled it “disrespectful” and warned of adverse effects on European farmers. Countries that support the deal, including Germany and Spain, argue it is crucial for reducing dependence on China and strengthening EU competitiveness.

While some trade measures have taken effect under provisional rules, full implementation still requires final parliamentary approval, and legal challenges are anticipated. The episode highlights deep political divisions within the EU over trade governance and decision-making, with significant implications for EU unity and its global trade strategy.