Overview
- On January 21, the European Parliament referred parts of the agreement to the European Court of Justice, halting its consent vote and potentially delaying a final decision for up to two years.
- The European Council invited the Commission to move to provisional application, and the Commission signaled readiness; this step needs at least one member‑state ratification and a Council decision by qualified majority.
- Paraguay said it is preparing national ratification as Mercosur partners press for swift implementation after the deal was signed on January 17 in Asunción.
- The court referral centers on a rebalancing mechanism that could let Mercosur suspend concessions if future EU rules negate promised market access, a feature critics say could chill EU regulation.
- Political resistance remains strong as France, Poland, Austria, Ireland and Hungary opposed the pact and farmers staged protests, while analysts cite credibility risks and roughly €3 billion in foregone exports per month from delay.