The European Union starts the provisional application of the’EU-Mercosur Agreement, after the almost simultaneous ratifications by Uruguay and Argentina. The announcement came in Brussels by the President of the European Commission, Ursula von der Leyen, after consultations with the Member States and the European Parliament.

For Confindustria this is an historic step, consistent with the expectations of European and Italian industry, which the Association argued with conviction.

“We warmly welcome the announcement by the President of the European Commission, Ursula von der Leyen, on the start of provisional application of the EU-Mercosur Agreement. The almost simultaneous ratifications by Uruguay and Argentina, approved by overwhelming majorities, confirm the will of our partners to achieve its full effectiveness quickly. On the European side, the signal was received with immediacy: it is a victory for Europe and Italy, a historic step finally consistent with the expectations of European and Italian industry, which Confindustria has supported with conviction. A result that deserves the support of all political, economic and social forces committed to building strategic alliances in a phase of great uncertainty”. Said the President of Confindustria, Emanuele Orsini.

A strategic step for Italian industry

The start of provisional application gives a concrete acceleration to the agreement between the two economic areas, after months of institutional confrontation. It is a step that affects the architecture of the Euro-Latin American trade relations and opens an operational phase for companies and production chains.

“In a complex geopolitical context, Europe chooses responsibility and strategic vision. The agreement is not a technical act, but a strong political signal in favour of trade based on rules and transparency. For Italy, Europe's second largest manufacturer and already a leading player in trade with the Mercosur area, a new phase is opening: more access to markets, greater industrial integration, more attraction of investments, and more security in strategic supplies. We now expect similar support from Brazil and Paraguay, so that the agreement unfolds its full potential. The provisional entry into force of the agreement reinforces, on this occasion, Europe's credibility as a strategic partner and represents a decisive step towards a future of shared growth, economic security and sustainable competitiveness for our companies and for the new generations”. He added Barbara Cimmino, Vice President for Export and Investment Attraction of Confindustria.

European credibility and expected benefits

Provisional application allows the benefits of the agreement to be brought forward pending its full entry into force and sends a clear message to international partners: Europe intends to remain a central player in the definition of common rules for global trade. For the Italian production system, the understanding can result in increased market access, attraction of investment and strengthened economic security along strategic value chains.