EU lawmakers voted to challenge the recent free trade agreement with South American countries in the EU’s top court, which might delay or even derail the deal by up to two years. The European Union finalized its largest trade pact with Mercosur, consisting of Argentina, Brazil, Paraguay, and Uruguay, after 25 years of talks, but it still needs full approval to take effect.
German Chancellor Friedrich Merz, a main supporter of the agreement, expressed disappointment about the court referral, stating the EU assembly misunderstood the global situation. He emphasized the need for provisional application of the deal. Proponents believe it is crucial for countering U. S. trade policy and reducing dependence on China, while also urging that Mercosur countries may lose patience after prolonged negotiations.
Opposition, particularly from France, argues the deal will harm local farmers by increasing imports of cheap agricultural products. A group of lawmakers has asked the EU Court of Justice to clarify if the agreement can be applied before full ratification and whether it limits EU environmental and health policies. The court’s decisions usually take around two years. The European Parliament approved the motion narrowly, and France’s largest farm union hailed it as a victory.
With information from Reuters
