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Ahead of Ireland assuming the Presidency of the Council of the EU in July, Thibaut L’Ortye, Chief Policy and Public Affairs Officer, AmCham EU joined business and policy leaders at the AmCham Ireland’s Global Business Conference to reflect on the opportunities facing Europe’s economy. Against a complex geopolitical backdrop, the conversation looked at how forthcoming EU initiatives can strengthen Europe’s attractiveness for investment and long-term growth. From simplification efforts and the Industry Accelerator Act to the 28th regime, the Biotech Act and progress on the Savings and Investment Union, the scale of the agenda is significant. A renewed focus on deepening the Single Market was a clear priority, alongside maintaining openness to foreign investment as a driver of innovation, competitiveness and a stronger industrial base across Europe. Joining Mr L’Ortye on the panel was Lucinda Creighton, Founder and CEO, Vulcan Consulting and Colm O'Callaghan, Director of Public Affairs and Advocacy, AmCham Ireland. 

Business associations have expressed full support for the European Commission’s decision to provisionally apply the EU–Mercosur Interim Trade Agreement. The move marks a decisive step towards implementation after more than 25 years of negotiations. The economic case is compelling. The European Commission estimates indicate that, once fully implemented, the Agreement could increase EU exports to Mercosur by nearly 40%, generating €48.7 billion in additional annual exports and €77.6 billion in annual EU GDP gains by 2040. At the same time, prolonged delays have carried significant costs for European competitiveness. Swift operationalisation of the Agreement will enhance market access, diversify trade relationships and reinforce the EU’s leadership in sustainable, rules-based trade.

The European Parliament’s decision to refer the EU-Mercosur free trade agreement (FTA) to the Court of Justice adds a further delay to one of the EU’s most important and long-running trade initiatives.  

Commenting on the vote, Malte Lohan, CEO of AmCham EU, said: ‘Today’s vote by the European Parliament to refer the EU-Mercosur agreement to the Court of Justice is a self-inflicted setback for Europe’s economic interests and geopolitical relevance at a moment when the EU can least afford it. 

After 25 years of negotiations, this should have been Europe stepping forward as a global trade leader and champion of win-win partnerships. It was an opportunity to strengthen Europe’s global position, diversify supply chains and open new opportunities in a fast-growing market of 284 million people. 

Instead, this vote has chosen - yet again - delay. 

Europe’s credibility as a trade powerhouse is now on the line. The EU must move decisively to get this agreement back on track.’ 

The EU-Mercosur FTA will deepen economic ties, reduce barriers to trade and strengthen long-term engagement with a key region. How this process now unfolds will be critical not only for the agreement itself, but also for confidence in the EU’s broader trade agenda.