BERLIN, Jan 22 (Reuters) – The EU’s free trade deal with South American countries will probably be applied on a provisional basis as ‌soon as March, an EU diplomat told Reuters on Thursday, despite a looming challenge at the bloc’s top court.

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“The EU-Mercosur agreement shall be applied provisionally once the first Mercosur country has ratified it,” an EU diplomat told Reuters.

“That ‌will probably be Paraguay in March,” the diplomat added.

GERMAN BUSINESSES, CHANCELLOR MERZ CONDEMN DELAY

“The setback undermines Europe’s competitiveness and jeopardizes European jobs and prosperity,” Tobias Meyer, CEO of the logistics group DHL, told Reuters. He said it would be good if the pact could be enacted while the court investigated.

“Europe cannot afford to fall behind further,” he ⁠added.

Chancellor Friedrich Merz told delegates at the World Economic Forum in the Swiss Alpine resort of Davos on Thursday that he ‍regretted the European Parliament’s decision.

“But rest assured: We will not be stopped. The Mercosur deal is fair and balanced. There is no alternative to ‌it if ‌we want to have higher growth in Europe,” Merz said.

Critics of the deal, led by France, say it will increase imports of cheap beef, sugar and poultry and undercut domestic farmers.

French farmers have staged major demonstrations in Paris against the trade deal with hundreds of tractors blocking roads and landmarks such as the Eiffel Tower.

FRANCE SAYS PROVISIONAL IMPLEMENTATION WOULD BE UNDEMOCRATIC

The head of France’s CGB ⁠sugar beet producers’ lobby rejected any ⁠possibility of the accord taking ​effect provisionally.

“That would be a denial of democracy. Unacceptable!” Franck Sander told Reuters.

A spokesperson for France’s farm minister declined to comment.

Applying the pact provisionally, pending the ruling and parliamentary approval, could prove politically difficult given the likely backlash, and the European Parliament would retain the power to annul ‍it later.

“If (European Commission President) Ursula von der Leyen, the European Union, were to force through a provisional application, given the vote that took place in Strasbourg, it would constitute a form of democratic violation,” French government spokesperson Maud Bregeon told CNews TV, speaking before the EU diplomat’s comments.

The European Commission ​has said it will engage with EU governments and lawmakers before deciding what ‍to do next.

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The French navy intercepted a Russian oil tanker in the Mediterranean suspected of operating as part of Moscow’s shadow fleet, a network of falsely-flagged vessels used to export oil and avoid Western sanctions, according to reports.

President Emmanuel Macron said Thursday that French forces had boarded and searched the tanker, which is subject to international sanctions. 

The ship was reportedly sailing from Murmansk, in northern Russia, under the Comoros flag.

Writing on X, Macron said the operation took place on the high seas in the Mediterranean with the support of several allied countries.

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The French president added that the vessel had been diverted for further checks.

The tanker, identified as the Grinch, was intercepted between the southern coast of Spain and the northern coast of Morocco in the western Mediterranean, French maritime police said. 

The Associated Press reported the interception.

France and the U.K. gathered and shared intelligence on the vessel, according to French military officials who spoke to The Associated Press on condition of anonymity.

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The interception is the latest in a growing number of Russian-linked vessels stopped by U.S. and European authorities in recent months as Western powers intensify efforts to disrupt Russia’s oil exports.

As previously reported by Fox News Digital, in early January, U.S. forces seized another sanctioned tanker in the Atlantic Ocean.

U.S. European Command (EUCOM) announced the seizure of the Russian-flagged Marinera oil tanker in the North Atlantic Sea.

France’s Mediterranean Maritime Prefecture said the team that boarded the Grinch Thursday had inspected the vessel and decided documents raised doubts about the regularity of the vessel’s flag.

US MILITARY SEIZES ANOTHER FUGITIVE OIL TANKER LINKED TO VENEZUELA

The tanker is being escorted by the French navy to an anchorage for additional verification.

The European Union has imposed 19 rounds of sanctions on Russia since its full-scale invasion of Ukraine in 2022. 

Despite those measures, Russia has continued to export millions of barrels of oil, mainly to China and India and often at discounted prices.

What has become known as a “shadow fleet” consists of hundreds of old and poorly regulated tankers that change names, ownership structures and flags to avoid detection and sanctions.

Maritime data firm Lloyd’s List Intelligence estimates the global shadow fleet at about 1,400 tankers, many of which are subject to U.S., British or European sanctions, Reuters reported.

Ukrainian President Volodymyr Zelenskyy criticized European countries for not doing more to stop the transport of Russian oil using sanctioned vessels and which he says helps fund the war in Ukraine.

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“Why can [U.S. President Donald Trump] stop tankers of the ‘shadow fleet’ and seize their oil, while Europe can’t?” Zelensky asked at the World Economic Forum in Davos, Switzerland, Thursday.

“Russian oil is transported right along the European coast. This oil funds the war against Ukraine. This oil helps destabilize Europe.”

South Africa has launched an inquiry into Iran’s participation in joint naval drills with BRICS nations last week, apparently against the orders of President Cyril Ramaphosa.

BRICS is a group of 10 countries: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, South Africa and the United Arab Emirates. The acronym BRICS represents the initial letters of the founding members, Brazil, Russia, India, China and South Africa.

The group, formed in 2006, initially focused on trade, but has since expanded its mandate to include security and cultural exchanges.

It concluded a week of joint naval drills in South African waters on January 16. The drills have caused controversy in the country and drawn the ire of the United States.

Although South Africa regularly holds drills with Russia and China, the latest maritime training comes amid heightened tensions between the US and many of the group’s members, particularly Iran, which until last week was grappling with mass protests at home that turned deadly.

Pretoria said the exercise, named Will for Peace 2026, was essential for ensuring maritime safety and international cooperation. The training “brings together navies from BRICS Plus countries for … joint maritime safety operations [and] interoperability drills”, a statement from the South African military noted before the exercises.

However, US President Donald Trump’s administration, which has previously accused BRICS of being “anti-American” and has threatened its members with tariffs, has strongly criticised the naval exercises.

Here’s what we know about the exercises and why they were controversial:

What were the drills for?

South Africa hosted the BRICS naval exercise, which included warships from participating countries, on January 9-16.

China led the training, which took place near the southwestern coastal city of Simon’s Town, which is home to a major South African naval base.

Exercises in rescue and maritime strike operations as well as technical exchanges were planned, according to China’s Ministry of National Defense. All BRICS countries were invited.

Captain Nndwakhulu Thomas Thamaha, South Africa’s joint task force commander, said at the opening ceremony that the operation was not just a military exercise but a statement of intent by BRICS countries to forge closer alliances with each other.

“It is a demonstration of our collective resolve to work together,” Thamaha said. “In an increasingly complex maritime environment, cooperation such as this is not an option. It is essential.”

The purpose, he said, was to “ensure the safety of shipping lanes and maritime economic activities”.

South African Deputy Defence Minister Bantu Holomisa told journalists that the drills had been planned before the current tensions between some BRICS members and the US.

While some BRICS countries may face issues with Washington, Holomisa clarified that they “are not our enemies”.

Who participated and how?

China and Iran deployed destroyer warships to South Africa, while Russia and the United Arab Emirates sent corvettes, traditionally the smallest warships.

South Africa, the host country, dispatched a frigate.

Indonesia, Ethiopia and Brazil joined the exercises as observers.

India, the current chair of the group, chose not to participate and distanced itself from the war games.

“We clarify that the exercise in question was entirely a South African initiative in which some BRICS members took part,” India’s Ministry of External Affairs said in a statement. “It was not a regular or institutionalised BRICS activity, nor did all BRICS members take part in it. India has not participated in previous such activities.”

Why is South Africa facing US backlash over the drills?

The US is angry that South Africa allowed Iran to participate in the drills at a time when Tehran was accused of launching a violent crackdown on antigovernment protests that had spread across the country.

The protests broke out in late December, when shopkeepers in Tehran closed up their businesses and demonstrated against inflation and the falling value of the rial. These protests swelled into a broader challenge to Iran’s rulers, as thousands of people took to the streets nationwide to demonstrate over a few weeks.

Security forces in some areas cracked down on the crowds, resulting in the deaths of “several thousands”, according to a statement on Saturday by Supreme Leader Ayatollah Ali Khamenei. While activists said thousands of protesters were killed, the Iranian government said this was an exaggeration and claimed police officers and security service members formed a significant chunk of those who were killed.

The Iranian authorities also claimed the US and Israel had armed and funded “terrorists” to inflame the protests. They said agents affiliated with foreign powers, and not state forces, were responsible for the deaths of civilians, including protesters.

The mass uprising is one of the most disruptive the country has witnessed since the 1979 Iranian Revolution. Tens of thousands of people are believed to have been arrested.

Before the BRICS drills, the US warned South African President Cyril Ramaphosa that Iran’s participation would reflect badly on his country, according to a report by the Daily Maverick, a South African newspaper.

Ramaphosa subsequently ordered Iran to withdraw from the exercises on January 9, the paper reported.

However, three Iranian vessels that had already been deployed to South Africa continued to participate.

In a statement on January 15, the US embassy in South Africa accused the South African military of defying orders from its own government and said it was “cozying up to Iran”.

“It is particularly unconscionable that South Africa welcomed Iranian security forces as they were shooting, jailing, and torturing Iranian citizens engaging in peaceful political activity South Africans fought so hard to gain for themselves,” the statement read.

“South Africa can’t lecture the world on ‘justice’ while cozying up to Iran.”

South African political analyst Reneva Fourie said Washington was merely fishing for reasons to criticise South Africa for bringing a genocide case against Israel before the International Court of Justice for its war in Gaza.

“The US is looking for an entry point,” she said.

The US “is facing increased infringement on freedom of expression and association, democracy and human rights as well as increased militarisation. The US should focus on its own dire state instead of meddling in the affairs of others.”

Tensions over the military drills are only the latest point of contention between the US and Iran.

During the 12-day war between Iran and Israel in 2025, Washington sided with Israel, and on June 22, the US bombed three nuclear sites in Iran. Initial assessments from US officials noted that all three were severely damaged. Iran retaliated by bombing a military base in Qatar where US troops are positioned, in what was largely seen as a face-saving exercise.

Which other BRICS members have tensions with the US?

Nearly all members of BRICS have problems with the current US government.

Besides the dispute over Iran joining the naval drills, South Africa is also caught up in a battle of narratives with the Trump administration, which alleges, without any evidence, that the country’s minority white population is being subjected to a “genocide“. In 2025, Trump established a refugee programme for white Afrikaners wishing to “flee” to the US.

The US has also condemned South Africa’s decision to take Israel to the International Court of Justice in December 2023.

The US currently levies tariffs on South African exports of up to 40 percent as a result.

China has been locked in a tense trade war with the US for more than a year. After slapping each other with tariffs exceeding 100 percent early last year, these were suspended pending trade talks. But China then restricted exports of its rare earth metals, which are required for technology crucial for defence, and Trump again threatened more tariffs before the two sides reached an agreement in late October, under which China agreed to “pause” restrictions on the export of some metals.

Russia is also on Washington’s radar because of its war in Ukraine.

Just three days before the drills began, the US seized a Venezuela-linked Russian oil tanker in the North Atlantic due to its sanctions on both countries.

On January 3, the US military abducted Venezuelan President Nicolas Maduro and his wife, Cilia Flores, from the capital, Caracas. Both now face drugs and weapons charges in a New York federal court. In September, the US had begun a campaign of air strikes on Venezuelan boats in the Caribbean, claiming they were trafficking drugs to the US, but providing no evidence.

India has been hit with 50 percent tariffs on its exports to the US, partly as punishment for continuing to buy Russian oil.

This month, the US withdrew from the India-led International Solar Alliance, although this withdrawal was part of a broader move to pull the US out of several international bodies.

Harsh V Pant, a geopolitical analyst at the New Delhi-based Observer Research Foundation think tank, told Al Jazeera that, for India, keeping out of the naval drills was “about balancing ties with the US”.

Pant added that in India’s opinion, “war games” were never part of the BRICS mandate.

While BRICS was founded as an economic bloc, it has widened its mandate to include security.

What has the response been in South Africa?

Ramaphosa’s government has also faced some backlash over the drills at home.

The Democratic Alliance (DA), a former opposition party that is now part of the governing coalition and largely represents the interests of the white minority, blamed Minister of International Relations Ronald Lamola for failing to hold the Department of Defence to account.

Lamola is from the African National Congress (ANC) party, which, until 2024, governed South Africa alone.

“By allowing the Department of Defence to proceed unchecked in these military exercises, Minister Lamola has effectively outsourced South Africa’s foreign policy to the whims of the South African National Defence Force (SANDF), exposing the country to serious diplomatic and economic risk,” the DA said in a statement two days after the exercises started.

“South Africa is now perceived not as a principled non-aligned state, but as a willing host for military cooperation with authoritarian regimes.”

What is the South African government saying now?

South African officials have shifted from initially justifying the drills to distancing themselves from the Iran debacle.

Despite initial statements from officials that the drills would go ahead as planned, Ramaphosa eventually appeared to bow to US pressure and, on January 9, ordered that Iran be excluded, local media reported.

Those instructions do not seem to have been followed by the South African Defence Department or the military, however.

In a statement on January 16, Defence Minister Angie Motshekga’s office said Ramaphosa’s instructions had been “clearly communicated to all parties concerned, agreed upon and adhered to as such”.

The statement went on to say that the minister had established an inquiry board “to look into the circumstances surrounding the allegations and establish whether the instruction of the President may have been misrepresented and/or ignored as issued to all”.

A report on the investigation is expected on Friday.

This is not the first time South Africa has been criticised for its military relations with Iran.

In August, its military chief, General Rudzani Maphwanya, prompted anger from the DA when he embarked on a trip to Tehran and affirmed that South Africa and Iran had “common goals”.

His statement came just weeks after the Iran-Israel war. He was also reportedly critical of Israel while in Tehran.

Some ANC critics called for Maphwanya’s firing, but he has remained in office.