IFA president Francie Gorman blasts EC decision to provisionally apply Mercosur agreement

IFA President Francie Gorman has criticised an EC decision to provisionally apply the Mercosur free trade agreement. Picture: Finbarr O'Rourke

The European Union will provisionally apply a contentious free trade agreement with South American bloc Mercosur to ensure it secures first-mover advantage, the European Commission said on Friday, in a move which the IFA said failed to respect a recent European Parliament vote. 

The agreement can enter into force provisionally two months after an exchange of notifications with Mercosur members, the Commission said.

The EU normally waits for approval of its free trade agreements by EU governments and the European Parliament. But EU lawmakers voted last month to challenge the agreement in the bloc's top court, potentially delaying its full implementation by two years.

Approval by the EU assembly remains ultimately necessary, but the EU and Mercosur can begin reducing tariffs and applying other trade aspects of the agreement before then.

IFA President Francie Gorman said the decision to provisionally apply the Mercosur trade deal fails to respect the recent European Parliament vote to refer the deal to the ECJ.

“It’s somewhat ironic that the Commission president is so keen to drive on in the same week that their latest audit in Brazil shows the controls are not in place. Despite what the EU Commission has frequently said, the Brazilian authorities have not managed to get their house in order," said Mr Gorman.

French president Emmanuel Macros was also critical. "For France, it's a surprise, a bad surprise, and for the European Parliament, it's disrespectful," French President Emmanuel Macron told reporters after meeting Slovenian Prime Minister Robert Golob at the Elysee Palace in Paris.

In a statement, French meat industry association Interbev called on French members of the European Parliament to act to "prevent the Commission from circumventing the democratic debate".

In a vote in January, 21 EU countries supported the agreement, while Ireland, Austria, France, Hungary, and Poland voted against and Belgium abstained.

The EU deal with Argentina, Brazil, Paraguay and Uruguay, concluded in January after some 25 years of negotiations, could remove around €4bn of duties on EU goods exports, making it the bloc's biggest ever free trade agreement in terms of potential tariff reductions.

Germany and other supporters of the deal such as Spain say it is essential to offset business lost due to US tariffs and to reduce reliance on China for critical minerals.

The German-dominated centre-right European People's Party -- the biggest political group in the European Parliament -- and the European Dairy Association both welcomed the swift application of the agreement.

The Commission's move follows Argentina and Uruguay ratifying the agreement on Thursday, with Brazil and Paraguay expected to follow soon.

"I've said before, when they are ready, we are ready," Commission President Ursula von der Leyen said in a short statement. "On that basis, the Commission will now proceed with provisional application."

Reuters