BRUSSELS, May 1 (Xinhua) -- The EU-Mercosur Interim Trade Agreement entered into provisional application on Friday, aiming to bring immediate benefits to businesses, workers and citizens on both sides, the European Commission said.
"From day one, tariffs are reduced and new market opportunities are opened," European Commission President Ursula von der Leyen said in a statement. She said the agreement will benefit EU businesses of all sizes, consumers and farmers, while providing "full protection" for sensitive sectors.
In a post on social media platform X on Friday, von der Leyen said tariffs "start falling" and companies are "gaining access to new markets," adding that provisional application will show the agreement's "tangible benefits."
European Commissioner for Trade and Economic Security Maros Sefcovic said the provisional application of the agreement marks "a big day" for the EU in terms of trade. He said the Commission is engaging with EU businesses, including small and medium-sized enterprises, to help them explore opportunities under the deal.
According to the Commission, the agreement will gradually eliminate import duties on more than 91 percent of EU goods exported to Mercosur, opening access to a shared market of more than 700 million people.
From Friday, tariffs will be removed or sharply reduced on key EU exports including cars, pharmaceuticals, wine, spirits and olive oil, the Commission said.
EU farmers and agrifood producers are also expected to benefit from lower or eliminated duties.
The Commission expects the agreement to boost the EU's annual exports to the Mercosur region by 39 percent by 2040, bringing them to 50 billion euros (59 billion U.S. dollars).
The provisional application follows a Council decision in January authorizing the Commission to provisionally apply the agreement after the first ratification by one Mercosur country. Von der Leyen announced on Feb. 27 that the EU would proceed with provisional application. ■