The deal, covering Brazil, Argentina, Paraguay and Uruguay, represents the EU’s largest trade pact to date and comes after more than two decades of negotiations.

An EU diplomat said provisional application could begin once the first Mercosur country completes ratification, with Paraguay expected to do so as early as March.

This approach would allow parts of the agreement to take effect while legal scrutiny continues, a move supporters see as essential to protect European economic interests in an increasingly competitive global trade environment.

The provisional rollout comes despite EU lawmakers referring the agreement to the European Court of Justice, a step that could delay full implementation by up to two years. The referral reflects deep divisions within the bloc, particularly concerns about democratic oversight, environmental standards and the impact on sensitive sectors such as agriculture.

Germany has emerged as one of the strongest backers of the agreement, arguing that Europe needs new export markets to counterbalance trade losses from U.S. tariffs and to reduce economic dependence on China.

German officials and business leaders warn that further delays could undermine Europe’s competitiveness at a time of slowing growth and rising geopolitical uncertainty.

Chancellor Friedrich Merz described the parliamentary referral as a setback but insisted the deal remains vital for Europe’s future.

Speaking to business and political leaders, he said the agreement was fair, balanced and necessary to boost growth, investment and strategic autonomy across the continent.

Major European companies have echoed this view, saying the trade pact would improve access to fast-growing South American markets and strengthen supply chains.

Logistics and manufacturing firms in particular see the agreement as a way to lower tariffs, reduce regulatory barriers and support long-term job creation.

France, however, continues to lead opposition to the deal, citing fears that cheaper imports of beef, sugar and poultry would undercut domestic farmers.

French agricultural unions have staged large-scale protests, including tractor blockades in major cities, warning that the agreement could devastate rural livelihoods and weaken food security standards.

French officials have also raised democratic concerns, arguing that provisional implementation before full parliamentary approval would bypass national legislatures.

Farm lobby leaders have labelled such a move unacceptable, saying it would erode public trust in EU decision-making and fuel political backlash.

Despite these objections, supporters note that provisional application is a standard EU practice used in previous trade agreements.

They argue it allows businesses to benefit from reduced tariffs and improved market access while courts and parliaments complete their reviews, with safeguards in place should the deal later be rejected.

The European Parliament would retain the power to annul the agreement if legal or political objections ultimately prevail.

This has done little to ease tensions, however, as critics fear that once economic benefits begin to flow, reversing the pact would become politically difficult.

The European Commission has said it will consult closely with member states and lawmakers before deciding the next steps.

EU leaders are also weighing the broader geopolitical context, including strained transatlantic relations and growing pressure to diversify trade partnerships amid shifting global alliances.

As debates continue, the likely provisional start in March highlights the EU’s determination to move forward despite internal divisions.

Whether the Mercosur deal becomes a cornerstone of Europe’s trade strategy or a flashpoint for deeper political conflict will depend on how these tensions are managed in the months ahead.

The meeting comes amid growing internal divisions, with several member states expressing concerns over the impact of the deal on European farmers.

At the heart of the discussion is whether the EU can reconcile its trade ambitions with the protection of domestic agricultural interests.

Italy’s position has emerged as particularly decisive, as Brussels seeks to assemble the required majority to approve the agreement.

France and Italy previously stalled progress by raising objections linked to farmer protests and fears of market disruption.

Farmers across several EU countries worry that cheaper imports from South America could undercut local producers.

Products such as beef, sugar, and poultry have been central to these concerns, especially in countries with strong farming lobbies.

In response, the European Commission has invited all 27 agriculture ministers for talks aimed at addressing these anxieties directly.

European commissioners responsible for agriculture, trade, and health are expected to offer concrete reassurances.

These include guarantees on future funding under the Common Agricultural Policy, a cornerstone of EU farm support.

A proposed multi-billion-euro crisis reserve is also being highlighted as a safety net for farmers facing sudden market shocks.

Recent proposals to merge agricultural funding with regional development funds have alarmed several farming-heavy nations.

To calm these fears, EU leadership has reiterated long-term budget commitments for the agricultural sector.

Brussels has also signaled willingness to strengthen import controls, particularly on pesticide residues in food products.

Such measures are intended to ensure that imports from Mercosur countries meet EU health and environmental standards.

Diplomats say these assurances are critical to winning over undecided governments ahead of a crucial vote.

Supporters of the agreement, including Germany and Spain, argue the deal is strategically vital for Europe.

They see it as a way to boost exports at a time when global trade is under pressure from rising protectionism.

The agreement would also reduce the EU’s dependence on China by improving access to key raw materials.

After 25 years of negotiations, the Mercosur deal is poised to become the EU’s largest trade agreement by tariff reductions.

However, opposition remains strong in some quarters, with Poland and Hungary openly resisting the pact.

France continues to voice skepticism, citing environmental standards and farmer livelihoods.

Italy’s stance is therefore seen as the potential tipping point in the approval process.

Italian officials have indicated they are not fundamentally opposed to the agreement.

They are instead seeking firm guarantees on reciprocity and regulatory alignment.

This includes assurances that imported agricultural goods will comply with EU rules.

The European Commission believes it is close to securing sufficient backing.

A qualified majority of member states representing most of the EU population is required to move forward.

If successful, the EU could authorise the signing of the agreement within days.

Failure, however, would underline the growing challenge of advancing trade liberalisation in a politically sensitive climate.

The farm ministers’ meeting reflects the balancing act between global trade ambitions and domestic political realities.

As Europe navigates economic uncertainty, the outcome could shape its trade policy direction for years to come.