Although it was not the main topic of the extraordinary European summit on Thursday 22 January, which was devoted to transatlantic relations (see EUROPE 13792/1), European leaders were unable to avoid the burning issue of Mercosur.
The trade agreement with Argentina, Brazil, Paraguay and Uruguay, signed on 17 January in Asunción (see EUROPE 13789/14), is still fuelling controversy - particularly over the potential provisional application of the free trade agreement.
What is the issue? As the President of the European Council, António Costa, pointed out at a press conference, by validating the trade agreement on 9 January (see EUROPE 13783/1), the EU countries “also adopted a provisional application of the treaty”, allowing it to be implemented once at least one Mercosur country has ratified it.
However, in accordance with a tacit undertaking by the Member States, it is necessary to wait for the European Parliament to vote on its final consent before the agreement can be applied. This is something that anti-Mercosur countries, such as France, like to point out. For some, it would not be appropriate to further tarnish relations with the European Parliament.
The day before, on Wednesday 21 January, the European Parliament also voted in favour of a referral to the Court of Justice of the EU to assess the legal basis of the agreement, which has had the effect of delaying Parliament’s ratification process (see EUROPE 13791/2).
Under these conditions, pro-Mercosur countries such as Germany are in favour of provisional application to “avoid wasting time”.
This is also the view of the Swedish Prime Minister, Ulf Kristersson, who called on the Commission to notify provisional application “until Parliament puts an end to this misuse of its power”.
On her arrival at the summit, European Parliament President Roberta Metsola called for “no dramatisation of the situation”. However, she acknowledged that provisional application “is an option on the table” and that she would submit it to the leaders of the political groups “step by step, keeping calm and cool”.
According to European officials, there is no urgent need to activate this option. The President of the European Commission, Ursula von der Leyen, confirmed this: “A decision would only be needed at a stage when one country of Mercosur, or more countries of Mercosur have completed their procedure”, at the earliest within two months. “So we will be ready when they are ready”, she said. (Original version in French by Pauline Denys with the editorial staff)