The trade agreement between Mercosur and the European Union has been in provisional effect since May 1, pending final ratification by the European Parliament. Paraguayan Foreign Minister Rubén Ramírez Lezcano stated at a press conference at Mburuvicha Róga in Asunción that the provisional nature of the pact will remain in place until the European legislative body "gives its final approval."
The document was signed on January 17 in Asunción after more than 25 years of negotiations. Four days later, the European Parliament referred the text to the Court of Justice of the European Union (CJEU) for the community court to assess the agreement's compatibility with the treaties of the European bloc. Ramírez Lezcano explained that discussions in the European Parliament depend on the outcomes of this legal analysis regarding the compatibility of the free trade instrument between the two blocs.
The agreement covers a market of 700 million people and provides for the liberalization of more than 90% of current tariffs, some of them immediately. Brussels estimates that the pact will allow European annual exports to Mercosur countries to increase by 39% by 2040, reaching 50 billion euros. The Paraguayan foreign minister recalled that the EU signed an agreement with Canada more than nine years ago that has not yet been ratified but is in full effect, illustrating the possibility of long periods of provisional application.
The association pact is divided into two sections: a commercial one, under the purview of the European Commission led by Ursula von der Leyen, and a political one, focused on cooperation and strategic association. While the commercial part is already provisionally in force following ratifications in the congresses of Mercosur countries, the political section awaits additional approvals.
Regarding the 67th Summit of Presidents of Mercosur and Associated States, scheduled for June 29 and 30, Ramírez Lezcano assured that Paraguay's pro tempore presidency has achieved substantial progress that will be presented as tangible results. Some 800 people, 12 delegations, and representatives from multilateral and cooperation organizations, as well as lawmakers, have been accredited for the event.
Seven heads of state have confirmed their attendance: the five from Mercosur full member states, plus the leaders of Chile, José Antonio Kast, and Ecuador, Daniel Nobúa. Foreign ministers from member countries and associated states Colombia, Chile, and Panama will also participate. As special guests, the Minister of State for Trade of the United Arab Emirates, the Federal Minister for Foreign Affairs of Germany, the First Vice President of the Senate of Uzbekistan, and the Minister of Foreign Affairs of Trinidad and Tobago will be present, the latter with a request for full accession to Mercosur. In addition, 30 business leaders will be coming to explore trade and investment opportunities in the country.