Newsroom
Just days after sealing a landmark trade deal with South America, the European Parliament has thrown a curveball that could stall or even derail the agreement.
On Wednesday, lawmakers voted to refer the EU-Mercosur trade agreement to the European Court of Justice, potentially delaying its implementation for up to two years. The vote was razor-thin: 334 in favor, 324 against, with 11 absent. Lawmakers sent the deal to the EU’s top court to make sure it meets legal, environmental, and social standards before giving final approval.
The deal, signed last Saturday after 26 years of negotiations, brings together the EU and four South American countries: Argentina, Brazil, Uruguay, and Paraguay. While hailed as a major achievement, it has also faced fierce opposition from some member states, particularly France and Poland, which have raised environmental and labor concerns.
Now, before the agreement can take effect, it must receive approval from the European Parliament. With today’s vote sending it to the EU’s top court, that process is effectively on hold, leaving the deal’s future uncertain.
Analysts say the referral could buy more time for critics to push for stricter environmental safeguards or even scuttle the deal entirely, underscoring the tricky balancing act between opening new markets and responding to domestic political pressures.
