The European Union will begin provisional application of its free trade agreement with the Mercosur bloc of South American countries on May 1. The move comes despite ongoing political and legal challenges, including a referral to the EU Court of Justice from the European Parliament.
The European Commission finalized procedures for the provisional implementation, allowing tariff cuts on goods to take effect. While still awaiting ratification by the European Parliament, the Commission has chosen to proceed with provisional application.
This landmark agreement links economies representing 25% of global GDP. The EU is moving forward with the deal, in part, to counter tariff pressures from China and the United States, bypassing its own legislature in the process.