EU Parliament Refers Mercosur Trade Deal to Court of Justice

The European Parliament voted 334-324 on January 21, 2026, to refer the recently signed trade agreement with the Mercosur bloc—comprising Argentina, Brazil, Paraguay, and Uruguay—to the Court of Justice of the European Union. The move, initiated by Austrian Green MEP Thomas Waitz, seeks to determine if the pact aligns with EU environmental, consumer health, and market access policies. This legal review could delay final approval by up to two years.

The agreement was signed on January 17, 2026, in Asuncion, Paraguay, following 25 years of negotiations. It faces intense opposition from France and farmers in Ireland, Austria, and Italy, who argue that imports of cheap South American beef and poultry would undercut domestic producers and violate European Green Deal standards. French officials have warned that forcing the deal through would be a "democratic violation."

In contrast, German Chancellor Friedrich Merz and the European Commission view the pact as a strategic necessity to diversify supply chains, counter U.S. tariffs, and reduce reliance on China. To bypass the judicial delay, EU leaders are considering the provisional application of the deal as early as March 2026. This requires ratification by at least one Mercosur country; Paraguay and Argentina are currently accelerating their internal legislative processes. Paraguayan President Santiago Pena has warned that Mercosur may seek alternative global partners if the EU continues to delay implementation.