The European Union should act swiftly to provisionally apply the EU–Mercosur Interim Trade Agreement and accelerate the provisional application of the EU–India free trade agreement (FTA) in response to mounting geopolitical pressures, including those from the United States, according to a new report.

The analysis, published by EU Law Live, argues that advancing trade agreements with Mercosur and India would establish the world’s two largest free trade zones and reinforce cooperation among democracies at a time of intensifying global power rivalry. It notes that the United States has recently threatened European allies with tariffs and signaled the possible use of economic and military leverage, adding urgency to Brussels’ trade strategy.

The report stresses that provisional application of both agreements is legally available to the European Council and European Commission, even as the European Parliament has referred aspects of the EU–Mercosur agreement to the Court of Justice of the European Union. It points out that similar mechanisms were used in the provisional application of the Comprehensive Economic and Trade Agreement (CETA) with Canada.

Delaying implementation, the report warns, could undermine the EU’s credibility and cast doubt on its ability to engage decisively with strategic partners. It argues that even if the Court of Justice identifies legal concerns, these could be addressed without suspending provisional application or dismantling the agreements entirely.

Framing the issue in broader geopolitical terms, the report references calls by Canadian Prime Minister Mark Carney for a “new order” grounded in democratic values such as human rights, sustainable development, sovereignty, and territorial integrity. Swift action on trade deals with Mercosur and India, it says, would reflect that spirit and demonstrate Europe’s commitment to rules-based cooperation.

Ultimately, the report concludes that bold and timely provisional application would signal the EU’s reliability, agility, and strategic resolve in strengthening economic ties with major democratic partners, particularly India and the Mercosur bloc.