Published in News
EU–Mercosur Trade Deal in Trouble After Shock Parliament Vote
A surprise vote in the European Parliament has sent the EU–Mercosur trade deal to court, raising fresh doubts about its future.
Martina Osmak
Director of Marketing
A Big Trade Deal Hits a Roadblock
The European Union’s trade agreement with the Mercosur countries is now facing serious delays. On Wednesday, the European Parliament voted to ask the EU’s highest court to review whether parts of the deal follow EU law.
The Mercosur group includes Brazil, Argentina, Paraguay, and Uruguay. The deal is meant to boost trade between these countries and the EU, especially in agriculture and industry.
The vote passed by a very small margin. Only 10 votes made the difference.
Why Lawmakers Are Concerned
Many Members of the European Parliament (MEPs) worry about a specific rule in the agreement. This rule would allow Mercosur countries to challenge new EU laws if those laws reduce the trade benefits they get from the deal.
Critics fear this could be used against future EU rules on:
Environment protection
Climate action
Food safety
Farming standards
They argue that EU laws should not be weakened by trade agreements.
What Happens Next?
Sending the deal to the EU Court of Justice could take more than a year. During this time:
The approval process is likely paused
Support for the deal could weaken
The EU may look less reliable as a trade partner
The European Commission said it is disappointed by the vote. It warned that the delay could hurt the EU’s plans to expand trade with other regions.
Farmers’ Protests Add Pressure
The vote happened while farmers were protesting outside the European Parliament in Strasbourg. Many farmers are worried that cheaper farm products from Mercosur countries would hurt their income.
Some lawmakers said the court review shows support for European farmers and their concerns.
A Green MEP involved in the move said checking the legality of the deal was the Parliament’s duty.
Disagreement Over Temporary Use of the Deal
Even though the ratification may stop, some MEPs fear the Commission could still apply parts of the deal temporarily. This is legally possible under earlier decisions by EU member states.
The Commission says it wants agreement from lawmakers first. According to a senior socialist MEP, the EU’s trade chief has promised not to move forward without a vote in Parliament.
Why This Matters
The Mercosur deal is one of the EU’s largest trade agreements. Supporters say it would open new markets and strengthen global partnerships. Opponents say it risks harming farmers, the environment, and EU law-making power.
For now, the future of the deal remains unclear.