The long‑awaited EU‑Mercosur trade agreement has been thrown into fresh uncertainty after the European Parliament voted on Wednesday to refer the pact to the EU Court of Justice (ECJ), effectively freezing its approval process and potentially derailing more than two decades of negotiations.
In a razor‑thin vote, 334 MEPs supported the referral, while 324 opposed and 11 abstained, reflecting deep divisions over both the substance of the deal and the procedure used to advance it. It is understood, that the European Commission could still seek provisional application of the deal, provided EU member states agree.
The EU‑Mercosur agreement, covering the bloc’s trade relations with Brazil, Argentina, Uruguay and Paraguay, had recently overcome several political obstacles, raising hopes that final ratification might be within reach. Instead, the Parliament’s decision now places the deal in the hands of the EU’s top court, where judges will assess whether the agreement complies with EU treaties.
Reporetedly, the legal review could take around a year, during which the deal’s approval remains suspended.
Cyprus MEPs Loucas Fourlas and Michalis Hadjipantelas (EPP) expressed regret for the development, noting that this developments deprives the deal from improvements that could take place.
Deal to court
The group of 144 lawmakers who initiated the motion argue that the European Commission’s approach to splitting the agreement, allowing the trade pillar to be approved by the European Parliament and the Council alone, would push national parliaments, in the side, thus potentially violating EU law.
They also challenge the legality of the agreement’s “rebalancing mechanism”, which would allow Mercosur countries to impose compensatory measures if future EU environmental or consumer‑protection laws reduce their export access to the European market. Critics say this could constrain the EU’s ability to legislate on climate and public health.
Commission
The European Commission, which negotiated the deal, insists that all legal concerns raised by MEPs have been addressed in previous trade agreements and that the Mercosur pact follows established EU practice. It said it would consult with EU governments and lawmakers before deciding on next steps.
The ECJ will now begin its assessment, a process that could stretch well into 2027. Until then, the EU‑Mercosur deal remains in limbo, its future dependent not only on legal interpretation but also on shifting political winds within Europe’s institutions and member states.
France’s powerful farm union FNSEA welcomed the development, whith Prime Minister Sébastien Lecornu calling for respect towrads the important vote.