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.

By Underlines Team

Focusing Facts

  1. The deal removes duties on over 90 % of goods covering a US$22 trn market of roughly 720 million people beginning 1 May 2026.
  2. 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.
  3. 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
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