Brussels: The European Union on Friday initiated the provisional application of its much-anticipated trade agreement with the Mercosur bloc, marking a pivotal moment in EU trade policy, as announced by the European Commission chief.

According to Anadolu Agency, Ursula von der Leyen confirmed the commencement of the agreement on the social media platform X, underscoring the immediate and tangible benefits. She highlighted that tariffs would start to decrease and companies across the EU would gain access to new markets, enhancing investment predictability.

Von der Leyen emphasized that the provisional application would demonstrate the agreement's concrete advantages while addressing legitimate sensitivities. She noted that this phase would offer a comprehensive evidence-based perspective for the European Parliament and member states to conduct their oversight responsibilities effectively.

The EU-Mercosur agreement, negotiated over 25 years, aims to establish a free trade area covering more than 700 million individuals across Europe and Latin America. It promises to eliminate billions of euros in tariffs, opening up new market opportunities, especially for small and medium-sized enterprises.

Despite the economic prospects, the agreement has faced considerable opposition from within the EU member states and the European Parliament, reflecting ongoing debates about its broader implications.