Deal awaits final approval steps as provisional implementation could begin in May.

On Tuesday, Brazil’s Congress ratified the free trade agreement (FTA) between the Southern Common Market (MERCOSUR) and the European Union (EU), signed Jan. 17 in Asuncion by the governments of both blocs after more than two decades of negotiations.

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The agreement was enacted during a joint ceremonial session of Congress attended by Senate President Davi Alcolumbre, Chamber of Deputies Speaker Hugo Motta, Vice President Geraldo Alckmin and Foreign Minister Mauro Vieira.

Brazil became the third MERCOSUR country to enact the agreement, following Argentina and Uruguay. Paraguay is now the only member yet to do so.

Alcolumbre highlighted the swift processing of the FTA in Congress and said it is expected to enter into provisional force in May, provided the European timeline proceeds without delays.

“With due speed, Parlasur, the Chamber of Deputies and the Senate approved the document in less than two months. Several tariff reductions will take effect immediately when it enters into force, while others, more strategic in nature, will be implemented gradually over the coming years,” he said.

The Senate president emphasized that this is the largest trade agreement between two blocs in the world, covering a market of about 718 million people and a combined gross domestic product (GDP) of US$22 trillion.

Alckmin, who also serves as minister of development, industry and trade, said the Brazilian government informed the European Union on Tuesday that the agreement had been enacted, a necessary step for its provisional entry into force.

“If everything goes well, it will enter into provisional force in May, opening up an extraordinary opportunity,” Alckmin said. He noted that this procedure allows some trade measures to be applied before the agreement receives full ratification by the European Parliament.

The early implementation of some measures was announced in February by European Commission President Ursula von der Leyen after the agreement was enacted by the congresses of Argentina and Uruguay.

For full entry into force, however, the EU-MERCOSUR free trade agreement must be ratified by the European Parliament after the Court of Justice of the European Union issues a ruling on its legality.

teleSUR/ JF

Source: EFE

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