The association agreement between Mercosur (the South American trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay) and the European Union entered provisionally into force on Friday, May 1st, creating a combined market of more than 700 million people in what ranks as one of the largest reciprocal trade deals ever concluded. Signed in Asunción in January, the deal immediately begins phasing out tariffs on 95% of Mercosur products and 91% of EU goods, with reductions unfolding over 12 to 15 years — and up to 30 years for the automotive sector — though full ratification by the European Parliament remains pending. The agreement arrives as global protectionism rises, with European interest sharpened by US tariff pressures, though the four Mercosur members have yet to agree on how to divide preferential export quotas for sensitive goods such as beef, rice, and honey, leaving an informal first-come, first-served system temporarily in place.