The Deal Goes Live — Commission Doesn't Wait
Friday, February 27, 2026. Brussels. Ursula von der Leyen steps before the cameras and delivers the sentence that reshapes European trade policy.
'I've said before, when they are ready, we are ready. On that basis, the Commission will now proceed with provisional application.'
The day before, Argentina and Uruguay became the first countries in the world to complete full parliamentary ratification of the EU-Mercosur agreement. For the Commission, that was the starting gun.
What provisional application means
Provisional application activates the trade pillar of the agreement — tariffs, tariff-rate quotas, rules of origin, services market access. It does not cover investment protection or political cooperation, which require ratification by 27 national parliaments.
The mechanism: the agreement takes effect on the first day of the second month after the exchange of formal notifications between the EU and Mercosur countries. If notifications are exchanged in March — the first tariff cuts hit on May 1, 2026.
| Enters into force | Waits for full ratification |
|---|---|
| Tariff elimination on 91% of goods | Investment protection |
| Tariff-rate quotas (TRQ) | Political cooperation |
| Rules of origin | Investment dispute resolution |
| Government procurement access | Worker mobility |
| Protection of 347 geographical indications |
Von der Leyen was careful to add: 'Provisional application is, by its nature, provisional. The agreement can only be fully concluded once the European Parliament has given its consent.'
But the fact stands: tariffs will start falling before the European Parliament gets to vote.
A continent divided
Emmanuel Macron did not mince words. Meeting Slovenian Prime Minister Robert Golob at the Élysée Palace, he told Reuters reporters: 'For France, it's a surprise, a bad surprise, and for the European Parliament, it's disrespectful.'
In a separate statement, he said the Commission had made a "unilateral choice" despite the EP not having voted, and was assuming "a very heavy responsibility."
Across the Rhine — enthusiasm. German Foreign Minister Johannes Wadephul (CDU) called it "Europe's hour" and spoke of "more prosperity and growth for people on both continents." He had previously called the EP's January vote to refer the deal to the CJEU "a very big political mistake."
The centre-right EPP — the Parliament's largest group — and the European Dairy Association both welcomed the swift launch.
French MEP Céline Imart accused the Commission of "showing contempt" for farmers: 'We will continue to fight with determination to ensure that this provisional application never becomes permanent.'
Interbev, France's meat industry association, called on French MEPs to "prevent the Commission from circumventing the democratic debate."
EUR 4 billion at stake
The EU-Mercosur deal eliminates tariffs on over 91% of bilateral trade. For EU exporters, that translates to EUR 4 billion in annual tariff savings — primarily on cars (35% to 0%), machinery, chemicals and pharmaceuticals.
For Mercosur — preferential access to 450 million consumers for agricultural products: beef, poultry, sugar, rice, honey, soy.
Germany and Spain argue the deal is essential to offset trade losses from US tariffs and reduce dependence on China for critical minerals.
The Court question
The European Parliament referred the deal to the CJEU on January 21 under Article 218(11) TFEU. The Court's opinion will take 12-18 months.
The legal question remains open: can provisional application run in parallel with CJEU proceedings? The Commission says yes — provisional application requires a Council decision, not parliamentary consent. The Council granted that authorization in January.
If the CJEU finds an incompatibility — provisional application would need to be reversed. But by then, businesses on both continents will already be trading under reduced tariffs.
What it means for business
Exporting cars, machinery or chemicals to South America? Tariffs start falling from May. Prepare origin documentation under Chapter 3 of the agreement.
Importing from Mercosur? Tariff-rate quotas on beef, poultry and sugar enter force. Check in-quota rates on our calculator.
In agriculture? The safeguard regulation adopted on February 5 (483-102) applies. 5% trigger on a three-year average, quarterly reports, provisional measures within 14 days.
Sources: Reuters (27 Feb 2026), Le Monde (27 Feb 2026), TF1info (27 Feb 2026), France Bleu (27 Feb 2026), Deutschland.de. Agreement: Art. 23.3.
“This Agreement may be provisionally applied. Such provisional application may take place between, on the one part, the European Union and, on the other part, one or more of the Signatory MERCOSUR States in accordance with their respective internal procedures.”
— Chapter 23 - General and Final Provisions, Article 23.3