EU-Mercosur Trade Deal Starts Provisionally on May 1

The European Union announced Monday that its long-awaited free trade agreement with the Mercosur bloc of South American nations will provisionally take effect on May 1, marking a significant step toward eliminating tariffs on more than 90 percent of goods traded between the two regions.

The deal, covering Argentina, Brazil, Paraguay and Uruguay, follows over 25 years of negotiations and comes amid heightened global economic pressures, including tariffs, restrictions on critical minerals and ongoing geopolitical tensions. The European Commission triggered the provisional start after receiving formal notification from Paraguay, the last of the four Mercosur countries to ratify the agreement. Parliaments in all four nations have now approved it, linking markets that serve more than 700 million people and represent about 25 percent of global gross domestic product. Bolivia, Mercosur's newest member, did not join the talks but may accede later.

Under the provisional application, tariffs on certain products will be removed immediately, establishing clearer rules for trade and investment. This approach allows implementation without full ratification by the European Parliament, which in...