Business & Economics
EU-Mercosur Mega-FTA Kicks In Despite Court Challenge
On 1 May 2026 Brussels activated the EU-Mercosur free-trade agreement, slashing most tariffs immediately even though the pact’s legality is still awaiting a European Court of Justice ruling.
Focusing Facts
- The deal removes duties on over 90 % of goods covering a US$22 trn market of roughly 720 million people beginning 1 May 2026.
- The European Parliament sent the agreement to the EU’s Court of Justice in January 2026, but the Commission used provisional-application powers to bypass a formal ratification vote.
- Commission forecasts project EU exports to Mercosur to rise 39 % to €50 billion by 2040, while Mercosur beef entering the EU faces a new quota of 99,000 t at 7.5 % duty.
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Perspectives in this article
- EU establishment and business-friendly media
- French farmer-aligned and left-wing critics
- South American political and pro-Mercosur voices