European Commission president Ursula von der Leyen announced on February 27 that Brussels would provisionally implement the controversial trade agreement with Mercosur, triggering a sharp rebuke from France and exposing deepening rifts within the bloc over one of the most ambitious trade pacts in recent history.

The move follows the ratification of the accord a day prior by Argentina and Uruguay, the first of the four South American countries to approve the landmark agreement signed in Asunción on January 17. Von der Leyen said Brazil and Paraguay were expected to follow suit imminently.

"When they are ready, we are ready," von der Leyen said in a statement, adding that the commission would "now proceed with provisional application" under powers granted by EU member states in January.

The decision allows businesses in the EU and ratifying Mercosur countries to benefit from reduced tariffs and streamlined customs procedures before the agreement formally enters into force. Commission officials said provisional application would begin two months after completing formalities with Uruguay.

However, von der Leyen emphasised the temporary nature of the arrangement. "Provisional application is, by its nature, provisional," she said. "The agreement can only be fully concluded once the European Parliament has given its consent."

The European Parliament referred the deal to the EU's top court for a legal review within days of the signing ceremony, delaying a final vote on ratification and reflecting the political sensitivity surrounding the accord.

French president Emmanuel Macron condemned the commission's decision as a "bad surprise" that showed disrespect to the European Parliament. "For France, it's a surprise, a bad surprise, and for the European Parliament, it's disrespectful," he said.

According to AFP, French agriculture minister Annie Genevard described the move as "very damaging to the functioning of our institutions", whilst French MEP Céline Imart accused Brussels of "showing contempt" for European farmers.

"The commission is sending a disastrous signal to our farmers, who are already struggling," Imart said, vowing to "continue to fight with determination to ensure that this provisional application never becomes permanent".

Germany and Spain, by contrast, welcomed the development. German foreign minister Johann Wadephul called the agreement "historic", adding that "companies and people from both continents can finally benefit from more prosperity and growth". Germany's substantial automotive industry stands to gain significantly from the elimination of tariffs ranging from 14% to 35% on European exports to South America.

The deal, which took a quarter century to negotiate following repeated collapses over environmental concerns and agricultural competition, creates one of the world's largest free trade zones encompassing over 700mn consumers and 30% of global GDP.

The pact is designed to axe tariffs on up to 91% of European goods entering Mercosur markets and 92% of levies on South American exports to the EU. Brussels estimates the agreement will save European exporters more than €4bn annually in duty payments, with particular benefits for machinery, chemicals and pharmaceutical manufacturers.

Von der Leyen defended the accord as offering "countless opportunities" for European businesses, workers and citizens, framing it as essential to Europe's strategic interests in an era of intensifying global competition. "This is about resilience, this is about growth and Europe shaping its own future," she said.

The agreement also grants European companies improved access to South American markets and resources, including rare earths critical for advanced manufacturing. European Council president António Costa, who attended the January signing ceremony, had hailed the deal as a rejection of "isolationism, unilateralism and the use of trade as a geopolitical weapon".

European agricultural producers remain vehemently opposed, fearing they will be undercut by cheaper South American imports, particularly beef and poultry. Farmers have staged protests across the continent, including demonstrations in Madrid earlier this month, echoing the widespread agricultural mobilisation that preceded the deal's signing.

France had led unsuccessful efforts to block the agreement before its signature, attempting to forge a blocking minority alongside Poland. However, the EU's approval process required only a simple majority, allowing Brussels to override objections from Paris and other sceptical member states.

The commission has insisted it has adequately addressed agricultural concerns through a series of safeguards for EU producers, though critics argue these measures remain insufficient.

Major Mercosur exports to the EU include agricultural products, raw materials and minerals, whilst European manufacturers stand to benefit from reduced levies on machinery, chemicals, pharmaceuticals and transport equipment shipped to South America. Trade flows between the blocs have historically been dominated by higher value-added European manufactured goods moving westward and South American farm produce and commodities travelling east.