Despite being signed just days ago, the EU-Mercosur deal hit a roadblock on Wednesday in the European Parliament. In a nail-biting vote, lawmakers referred the massive free trade agreement to the European Court of Justice, potentially delaying full implementation by months.
The chamber erupted in jubilation from MEPs in favour: despite the razor-thin margin, it was enough to send this landmark deal — more than 25 years in the making — to the ECJ. A total of 334 MEPs voted for the referral, 324 against, and 11 abstained. The result means the deal’s ratification will be paused while the Court examines whether it complies with EU treaties and legal procedures.
Concerns to be addressed
Pro-referral MEPs cited worries that the deal could sidestep national parliaments and conflict with EU legal standards. Lawmakers also highlighted environmental and food-safety risks, arguing that imports from South America might undermine European agriculture. Supporters, however, view the agreement as a major opportunity to expand markets and strengthen the EU’s global trade position, not least at a time when longstanding trade agreements have been disrupted by US trade policy.
Opponents — particularly farmers — staged protests outside the Parliament, surrounding the building with tractors. Demonstrators underscored strong resistance in countries such as France and Poland, where agricultural communities fear the impact of cheaper, lower-standard imports from Mercosur countries.
Barely dried ink
The ink is barely dry on the deal, so any delay will be seen as a victory for opponents, while supporters will be less enthused. Left-leaning groups, including Renew Europe, Greens/EFA, and the Left, backed the referral, as did the far-right Patriots for Europe. The European People’s Party and Socialists and Democrats largely opposed it, though some members broke party lines. The European Conservatives and Reformists allowed a free vote: Polish and French MEPs voted mostly in favour, while representatives from Italy, the Czech Republic, Belgium, and the Baltic states opposed.
The referral to the Court puts the European Parliament’s ratification on hold. While the European Commission could technically apply parts of the deal provisionally, doing so would risk political friction and is unlikely without broad support. The referral does not automatically block the agreement; if the Court finds no legal issues, the deal could still be ratified and implemented.
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Free trade in the time of tariff upheaval
Signed on 17 January 2026, the Mercosur deal aims to create a free trade area covering more than 700 million people. It reduces tariffs, opens new markets for European exporters, and deepens economic and strategic ties with Argentina, Brazil, Paraguay, and Uruguay. Supporters argue the agreement could boost European industries at a time of ongoing global trade tensions, including lingering effects from US tariffs and post-Brexit trade adjustments.
The agreement also carries implications beyond trade. Farmers face competition that could affect domestic markets, while European industries see opportunities for growth. For the Commission and deal supporters, it represents a chance to strengthen the EU’s strategic and geopolitical footprint.
Courtside
The Court’s eventual ruling could uphold the deal, require amendments, or delay it further. Either way, the referral highlights the EU’s ongoing challenge: balancing economic ambitions with environmental safeguards, regulatory standards, and the evolving authority of EU institutions, while highlighting new divisions and alliances across party lines.
