The European Parliament has voted to refer the long-negotiated EU-Mercosur trade agreement to the bloc’s highest court, a move that could delay a final decision on the pact for at least a year.
In a closely split vote, 334 MEPs backed a resolution requesting a legal opinion from the European Court of Justice (ECJ) on the legal basis of both the overarching EU-Mercosur Partnership Agreement (EMPA) and the Interim Trade Agreement (ITA).
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A total of 324 MEPs voted against and 11 abstained.
The ECJ review is likely to take more than 12 months, pushing back the timetable for ratification of the accord with the Mercosur bloc of Brazil, Argentina, Paraguay and Uruguay.
The parliamentary move comes after EU governments reached a qualified majority decision on 9 January in favour of the agreement, despite vocal opposition from European farm groups that have labelled the arrangement “fundamentally unbalanced” and “flawed”.
The deal was signed on 17 January in Paraguay. At the time, European Commission president Ursula von der Leyen said the blocs “creating the largest free trade zone in the world, together”.
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By GlobalDataThe European Parliament, however, has signalled it will not move to its own final vote until judges in Luxembourg have ruled.
In its resolution adopted yesterday (21 January), it confirmed the scrutiny of the texts would continue while awaiting the court’s opinion, saying “Only then, parliament will be able to vote to grant consent (or not)” to the agreement.
MEPs pressed ahead with the referral despite a late intervention from von der Leyen urging them not to do so.
Addressing the parliament, she said Mercosur “is hotly debate in this house” but argued that “the deal secures our access to raw materials, our industry needs, and the benefits to European companies will be huge”.
“It will deliver huge gains also for the producers of dairy, wine, spirits, oil and much more. At the same time, we have listened carefully to your concerns, and to our farmers and we have secured strong safeguards for sensitive agri-food sector,” von der Leyen added.
The agreement centres on reciprocal tariff liberalisation.
The EU plans to gradually eliminate customs duties on 92% of imports from Mercosur over a period of up to ten years. In return, Mercosur countries would phase out tariffs on 91% of EU goods over 15 years.
The EU is Mercosur’s second-largest trading partner, accounting for almost 17% of the South American bloc’s total trade in 2024. Bilateral trade in goods that year totalled more than €111bn ($129.7bn).
Political and sectoral reactions have been sharply divided. German Chancellor Friedrich Merz criticised the Parliament’s decision to trigger court scrutiny.
Writing on X, he said: “The European Parliament’s decision on the Mercosur agreement is regrettable. It misjudges the geopolitical situation. We are convinced of the agreement’s legality. No more delays. The agreement must now be provisionally applied.”
Farm lobby Copa-Cogeca, which represents EU agricultural organisations and cooperatives, backed the referral. Copa-Cogeca described the accord as “divisive” and added: “European farmers and agri-cooperatives are the first to pay for geopolitical upheavals and unrest.
“Fair and balanced trade, coherent with internal policies needs to be a certainty, even in uncertain times. Trade policy cannot continue to reward lower standards while European farmers are asked to do more with less.”
By contrast, European wine trade body Comité Européen des Entreprises Vins criticised the move, warning of prolonged uncertainty for exporters.
The organisation said: “Such a referral will result in a delay of 18 to 20 months in the ratification process, creating unnecessary uncertainty for businesses. [We are] disappointed because time is money. At a time of increasing geopolitical and economic challenges, it is more important than ever for the European Union to secure and diversify its trade relations with trusted partners without delay.
“The EU–Mercosur Agreement has the potential not only to enhance the competitiveness of European wines abroad, but also to reinforce the EU’s role as a global leader in promoting stability and open, rules-based trade.”
The agreement now remains in limbo until the ECJ delivers its opinion, after which the European Parliament will decide whether to give or withhold its consent.
