EU Parliament Sends Mercosur Trade Deal to Court

The Court of Justice of the EU will determine if the accord with South American nations is compatible with the bloc’s policy.

The European Parliament has voted narrowly to refer the EU’s free trade agreement with four South American countries to the Court of Justice, creating uncertainty after 25 years of negotiations. The deal, which eliminates tariffs on over 90% of trade and supports European exports, faces opposition from some EU nations citing potential harm to domestic farmers. The court will assess if the agreement conflicts with EU environmental and consumer health policies, a process that may take around two years. Meanwhile, the EU could provisionally apply the pact, but this may provoke political backlash, particularly from protesting farmers.