After overcoming major political obstacles following more than two decades of negotiations, the EU-Mercosur trade agreement has hit another major hurdle. On Wednesday, the European Parliament voted to refer the deal to the EU Court of Justice, a decision that will significantly delay its progress and could ultimately block its final approval. The vote was narrowly decided, with 334 members backing the referral, 324 opposing it, and 11 abstaining.
While the European Commission may still seek to apply the agreement on a provisional basis, this would require the approval of EU member states. Signed on 17 January, the agreement aims to create one of the world’s largest free trade areas, covering more than 700 million people. However, it remains highly controversial within the European Union. Several countries, including France and Poland, have consistently opposed the deal.
Supporters argue that the agreement offers major opportunities for European industries and would strengthen the EU’s strategic position at a time of ongoing tensions with the United States. Critics, particularly from the farming sector, warn that it could expose European markets to cheaper agricultural products from South America that may not meet EU standards, putting local producers at risk.
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