Yesterday, Uruguay and Argentina became the first countries to ratify the EU-Mercosur Agreement. Brazil and Paraguay are expected to follow soon. And it is such good news. Because it shows the trust and eagerness of our partners to take our relationship forward and to get this landmark agreement to work. The Mercosur Agreement creates a market of 720 million people. It opens countless opportunities. It cuts billions in tariffs. It allows our small and medium-sized businesses to access markets and scale they could only dream of before. And it also gives Europe a strategic first-mover advantage in a world of sharp competition and short horizons. But a first-mover advantage has to materialise. In January, the European Council empowered the Commission to provisionally apply the Agreement as from the first ratification by one Mercosur country. I have said before: When they are ready, we are ready. Therefore, over the last weeks, I have discussed this intensively with Member States, and with Members of the European Parliament. On that basis, the Commission will now proceed with provisional application.
'Provisional application' is, by its nature – provisional. It is right there in the name. In line with the EU Treaties, the Agreement can only be fully concluded once the European Parliament has given its consent. So the Commission will continue to work closely with all EU institutions, Member States and stakeholders to ensure a smooth and transparent process.
Let me conclude: Mercosur is one of the most consequential trade agreements of the first half of this century. It is a platform for deep political engagement with partners who see the world as we do. And who believe in openness, partnership and good faith. Partners who understand that open and rules-based trade delivers positive results for all. Mercosur embodies the spirit in which Europe is acting on the global scene. Europe is getting stronger and more independent. Our businesses, our workers and our citizens will reap the benefits – and they should reap them as soon as possible. This is about resilience. This is about growth and Europe shaping its own future.
