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EU Urged to Fast-Track Mercosur, India Trade Deals Amid Geopolitical Pressures

A new report urges the European Union to swiftly provisionally apply its interim trade agreement with Mercosur and expedite the provisional application of its free trade pact with India. It argues this is a necessary geopolitical response to pressures, including from the United States, and would create the world's two largest free trade zones. The report states that delaying these deals risks casting doubt on the EU's ability to engage reliably with major democratic partners. It also contends that any legal issues identified by the European Court of Justice could be remedied without halting the provisional application of the agreements.

Key Points: EU Must Expedite Mercosur & India FTAs, Report Urges

  • Counter US tariff threats
  • Forge largest free trade zones
  • Demonstrate EU reliability
  • Use provisional application legally
  • Remedy court issues later
2 min read

EU can't afford delay to provisionally apply Mercosur interim deal, fast‑track FTA with India

A new report urges the EU to provisionally apply trade deals with Mercosur and India to counter geopolitical pressures and strengthen democratic alliances.

"creating 'a new order' based on 'variable geometry' but held together by the values of 'human rights, sustainable development, solidarity, sovereignty and territorial integrity' - Report citing Mark Carney"

Mumbai, Feb 14

The European Union should move quickly to provisionally apply the EU-Mercosur Interim Trade Agreement and expedite provisional application of the EU-India free trade agreement to respond to urgent geopolitical pressures including from United States, a new report has said.

"The agreements with Mercosur and India would create the world's two largest free trade zones and send a strong statement of enhanced cooperation between democracies in this age of great power rivalry and spheres of influence," the report from EU lawlive said.

It reminded that the United States was threatening its European allies with tariffs and military force.

"Advancing these agreements is exactly the spirit Prime Minister of Canada Mark Carney invoked: creating 'a new order' based on 'variable geometry' but held together by the values of 'human rights, sustainable development, solidarity, sovereignty and territorial integrity'," it noted.

The report noted that provisional application is legally available to the Council and Commission even as European Parliament referred EU-Mercosur agreements to the Court of Justice on January 21, 2026.

It argued that delaying the agreements with Mercosur and India risks casting doubt on the EU's ability to engage with partners. The report argued that past precedents show provisional application of CETA and said even if the Court finds issues they could be remedied without halting provisional application.

"It would be a sad irony in history if the EU's own premier democratic oversight institution were to derail the EU's bold push to forge stronger ties with some of the world's largest democracies. This is a time for boldness," the report said.

The report said swift provisional application would demonstrate the EU's reliability and agility to partners such as Mercosur and India, the report further said.

"Lastly, even if the Court finds certain problematic issues with the agreements, those might still be remedied without fully unpacking the agreements or discontinuing provisional application," the report said.

- IANS

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Reader Comments

R
Rohit P
While I agree speed is important, we must not compromise on key Indian interests. The deal must protect our farmers and ensure fair access for our IT professionals. Let's be bold but also careful.
A
Arjun K
Finally some strategic thinking! In a multipolar world, India-EU ties are a necessity, not a luxury. This can counterbalance other influences and create a stable trade bloc based on democratic values. Good move.
S
Sarah B
The report makes a compelling case about geopolitical urgency. However, "provisional application" sounds risky. What if major issues are found later? Due process matters, even if it's slower.
V
Vikram M
Hope this translates to more job opportunities here and better access for our startups to European markets. The US tariffs threat shows we need strong alternative partners. Jai Hind!
K
Karthik V
The mention of "territorial integrity" in the report is key. Any partnership must respect that fully. On the economic front, faster clearance for our goods at EU ports would be a major win.

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