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8h ago

EU Poised to Provisionally Apply Mercosur Trade Deal After Parliament’s Court Referral

Commission leaders say they can trigger the pact once a Mercosur country ratifies.

Lawmakers of the European Parliament vote to refer the signed trade deal with South American bloc Mercosur to the European top court, Wednesday, Jan. 21, 2026, in Strasbourg, France. (AP Photo/Pascal Bastien)
A man holds up a sign which reads "Mercosur equals death for sure" as he participates in a demonstration against the EU-Mercusor trade agreement, outside the European Parliament in Strasbourg, eastern France, Tuesday, Jan. 20, 2026. (AP Photo/Pascal Bastien)
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Overview

  • The European Parliament voted 334–324 to seek a Court of Justice opinion, pausing its consent and potentially delaying ratification by 18 to 24 months.
  • Ursula von der Leyen said the EU is ready for provisional application after the first Mercosur ratification, with Council approval by qualified majority still required and no formal decision taken yet.
  • Mercosur governments are pressing ahead: Argentina plans to send the pact to Congress on Feb. 2, Paraguay will submit it next week with the goal of ratifying first, and Brazil has accelerated internal steps.
  • Germany’s Friedrich Merz and Italy’s Giorgia Meloni urged swift implementation, while France rejected bypassing Parliament through provisional application, underscoring a sharp split among EU leaders.
  • An EU diplomat said Paraguay could ratify in March, which would allow a March start to provisional application, and the pact would phase out over 90% of tariffs across a market of about 700 million consumers.