Mercosur deal thrown into uncertainty after MEPs send pact to top EU court

EuroActiv

Strasbourg, FRANCE – The European Parliament dealt a blow on Wednesday to the EU’s landmark trade deal with the Mercosur countries by backing a proposal to send the agreement to the EU’s top court for a legality check.

A narrow majority, just 10 MEPs, was key to approve the resolution, tabled by a cross-party group led by Greens and left-wing lawmakers and backed by liberals, socialists and centre-right politicians. The text asks the EU’s Court of Justice to verify that parts of the agreement comply with EU treaties.

At the heart of the dispute lies a mechanism in the deal that would enable Brazil, Argentina, Paraguay and Uruguay to challenge EU legislation threatening the market access granted under the agreement. Critics warn that this could include future sustainability rules.

The vote took place against the backdrop of tense protests by farmers outside Parliament in Strasbourg. The demonstration began on Tuesday and drew support from some lawmakers. It continued overnight until Wednesday noon, when the farmers and their tractors were expected to leave.

It could now take the Court over a year to deliver an opinion, and its findings could force changes to the agreement if it is found to be incompatible with EU law in parts. In the meantime, the ratification process will be suspended.

However, MEPs remain wary that the European Commission could still seek to provisionally apply the text – an option embedded in the decision backed by member states earlier this month.

The Commission has insisted it is trying to build consensus among lawmakers, but it has never fully ruled out provisional application.

UPDATE This article was amended to indicate difference in vote was only 10 MEPs

(adm, cs)