Trade, Sefcovic: “Speed up the agreement process. Act quickly on Mercosur, we lost 300 billion due to failure to implement it in 2021”

Brussels – Reducing the time between the conclusion of free trade agreements with third countries and their entry into force; acting quickly with Latin America to get the agreement with Mercosur off the ground; moving forward swiftly with the United States and China. These are the guidelines that were the focus of today’s (20 February) informal meeting of European Union trade ministers in Nicosia, Cyprus, which currently holds the six-month presidency of the EU Council. 

“When our Mercosur partners are ready with ratification, we must be ready too. We expect Argentina—which is going through a decisive phase this week—to be the first to ratify,” said European Trade Commissioner Maros Sefcovic at a press conference after the meeting. He clarified that the Commission is “in contact with Latin American countries” and is “naturally discussing with the Council Presidency, Member States and the European Parliament how to proceed” following the setback decided by the European Parliament with the referral of the agreement to the EU Court of Justice. He went on to highlight the economic opportunities that, in his opinion, the EU has already lost due to the slow ratification process. “We have lost almost €300 billion in GDP and more than €200 billion in export opportunities because we have not had the Mercosur agreement in place since 2021,” he explained, citing a study by the think tank ECIPE. This is “proof that in today’s world, we simply cannot afford to waste time.” 

But speed is not just about the Mercosur agreement: the Trade Commissioner dwelt at length on the EU Commission’s proposal “to reduce as much as possible the time between the actual conclusion of free trade agreements with third countries and their entry into force.” Sefcovic pointed out that there is “broad consensus” on the issue among the ministers of the 27 Member States, explaining that “if you look at any assessment of how much money we are losing when this process takes a long time, I think that—especially in this volatile world—it is something we can no longer afford.” According to the Slovak politician, in order for the EU to effectively benefit from the various trade agreements currently being negotiated, the process must be completed “within one year of the end of negotiations“. He called on the EU “to use the free trade agreements with India and Indonesia as test cases.” 

Sefcovic also hopes for swift action from the United States. “I reiterated to ministers that implementing the agreement with the US remains essential,” said Sefcovic, “also because it will help advance our work in other areas, such as critical minerals, with the aim of reducing dependencies and strengthening capabilities.” The EU trade chief also commented on the amendments to the agreement proposed by the European Parliament, saying he was “very close to the Council’s position on this”. In other words, “we clearly endorse the joint statement (signed last July by the EU Commission and the United States, ed.)” which “should be properly implemented by both sides. I understand,” Sefcovic continued, “that the Chair of the European Parliament’s Committee on International Trade, Bernd Lange, has done everything possible to build a strong majority support within the European Parliament and so we will go into the trilogues with these positions.” In any case, “it is very important to conclude this process as quickly as possible, because this joint statement was already reached in July 2025 and it is therefore time for us to complete the process as well.” However, Sefcovic’s press conference came about two hours before the announcement of the cancellation of Trump’s tariffs, leaving the European Commission in a state of further uncertainty: “We are in close contact with the US administration to obtain clarification on the measures they intend to take in response to this ruling,” commented Trade spokesperson Olof Gill. 

Finally, China. When asked at a press conference to define the European strategy towards China in one word, the EU Commissioner reiterated the concept of “rebalancing”. ‘Restoring balance in our relations is something we clearly need,” said Sefcovic, citing the latest figures showing “a deficit of €360 billion last year, something that is simply not sustainable in the long term.” While reiterating his willingness to discuss the issue with Beijing “in a diplomatic and constructive manner,” Sefcovic believes that the EU must “take action.” “I hope we will have a constructive assessment of our arguments in order to proceed with defining ways and measures to address the issue,” he concluded.