News|International TradeEU parliament refers Mercosur free trade deal to bloc’s top courtThe 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 to refer the European Union’s free trade agreement with four South American countries to the Court of Justice of the European Union. This decision introduces uncertainty regarding the future of the accord, which marks…
The European Parliament has voted to refer the European Union’s free trade agreement with four South American countries to the Court of Justice of the European Union. This decision introduces uncertainty regarding the future of the accord, which marks the conclusion of 25 years of negotiations.
On Wednesday, lawmakers in Strasbourg voted 334 to 324 in favor of requesting the court to determine the compatibility of the deal, which has the backing of most EU nations and the European Commission, with the bloc’s policies.
The EU signed its largest-ever trade pact, eliminating tariffs on over 90% of bilateral trade. The agreement benefits European exports of cars, wine, and cheese while facilitating the entry of South American beef, poultry, sugar, rice, honey, and soybeans into Europe.
Supporters, including Germany and Spain, argue that the deal is crucial for offsetting business lost to United States tariffs and reducing reliance on China by gaining access to critical minerals. The agreement is considered a geopolitical victory for the EU amid rising US tariffs and increasing Chinese exports.
This decision introduces uncertainty regarding the future of the accord, which marks the conclusion of 25 years of negotiations.
Opponents, including France, Poland, and farmer groups, express concerns that the agreement will increase imports of low-cost beef, sugar, and poultry, thereby affecting domestic farmers who have protested against the deal.
The European Commission has expressed regret over the European Parliament's decision to block the deal with the Mercosur trade bloc, comprising Argentina, Brazil, Paraguay, and Uruguay. European Commission trade spokesman Olof Gill stated that the concerns raised by the parliament have been addressed in detail by the commission.
The EU Court of Justice is tasked with determining if the agreement restricts the EU's capacity to set environmental and consumer health policies. The court's decision, expected in approximately two years, may necessitate amendments to the deal. The EU could provisionally apply the pact pending the court's ruling and parliamentary approval. However, political challenges may arise due to potential backlash, as demonstrated by recent farmer protests in Strasbourg.
Based on reporting by Al Jazeera.