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EU Parliament Sends Mercosur Trade Deal to Top Court, Stalling Ratification

Judges will assess the pact’s legal basis and its rebalancing clause, a review expected to take up to two years.

Overview

  • The European Parliament voted 334–324, with 11 abstentions, to seek a Court of Justice opinion on the newly signed agreement.
  • Referral freezes further ratification steps until the court rules, with such opinions typically taking 18–24 months.
  • The European Commission criticized the move as unjustified and says the pact could be applied provisionally once a Mercosur country ratifies.
  • France welcomed the referral as farmers rallied in Strasbourg, while German leaders urged provisional application on strategic grounds.
  • A reported Commission draft listing 24 agro‑products for potential EU safeguards has alarmed Mercosur exporters, adding commercial uncertainty alongside the legal review.