EU-Mercosur FTA Provisionally Starts May 1

The European Union and the South American Mercosur bloc, comprising Argentina, Brazil, Paraguay and Uruguay, will provisionally implement a landmark free trade agreement on May 1, creating one of the world's largest tariff-free zones after more than 25 years of intermittent negotiations.

The deal, finalized in January following endorsements by EU member states and all four Mercosur countries, eliminates tariffs on over 90 percent of trade between the two sides, which together represent 30 percent of global GDP and more than 700 million consumers. It opens markets for European exports such as cars, wine and cheese while easing access for South American beef, poultry, sugar, rice, honey and soybeans. Specific quotas limit initial impacts: an additional 99,000 tonnes of beef at reduced 7.5 percent tariffs phased in over six years, 180,000 tonnes of poultry over five years, and smaller volumes for sugar, ethanol, honey and rice. European products like olive oil and wine face gradual tariff reductions over 10 to 15 years.

European Commission President Ursula von der Leyen hailed the move, stating, "A lot of work went into getting this landmark deal over the line. Now it's time to...