EU Parliament Seeks European Court Review of Mercosur Trade Agreement
The European Parliament has voted in favor of referring the European Union's trade agreement with the Mercosur bloc to the European Court of Justice (ECJ) for legal examination. This decision, achieved by a narrow margin, reflects ongoing concerns about the agreement's compliance with fundamental EU treaties and its wider implications for member states.
The move to seek judicial review is expected to delay the ratification process of the agreement, potentially extending it by several months or even years. Previous advisory proceedings at the ECJ have ranged from 16 to 26 months, and there are no set deadlines for such reviews. The outcome of the court's evaluation will be critical in determining whether the agreement can secure majority support within the European Parliament in the future.
Recently, the President of the European Commission signed the trade pact with the Mercosur countries--Brazil, Argentina, Paraguay, and Uruguay--after a majority of EU member states endorsed the deal. However, some nations, such as France, have expressed strong opposition, primarily due to apprehensions about the potential negative impact on their agricultural sectors.
The initiative to involve the ECJ originated from French lawmakers, who raised concerns about the agreement's alignment with core EU principles. Their objections included insufficient controls on pesticide residues in imported goods and clauses that could allow Mercosur partners to claim compensation under certain circumstances. Additionally, critics questioned the European Commission's approach in finalizing the agreement, citing a lack of transparency and inadequate involvement of national parliaments.
Members of left-leaning and green parties criticized the separation of the agreement into two components: a political partnership that requires ratification by individual EU member states, and a trade section that only needs the European Parliament's approval. This structure, they argue, circumvents the legislative authority of national parliaments. Attempts by right-leaning factions to initiate a separate ECJ review did not succeed, though some groups have cited the handling of the Mercosur agreement as grounds for recent motions of no confidence against the European Commission.
The Mercosur agreement, negotiated over more than 25 years, aims to create one of the largest free trade zones in the world. However, persistent concerns from the agricultural sectors in countries such as France and Italy have repeatedly stalled its progress. The German government has actively advocated for the agreement, viewing it as a potential driver of economic growth.
The urgency surrounding the agreement has intensified following threats of new tariffs from the United States, highlighting the EU's need to demonstrate its ability to act decisively on the global stage. European Commission leaders have characterized the agreement's recent signing as a sign of the EU's resilience and unity.
Despite the potential delay caused by the ECJ review, the European Commission retains the option to provisionally apply the agreement, which could enable its benefits to reach businesses and consumers without full ratification. However, EU trade officials have indicated that no decision on provisional application has been made to date.
Following the parliamentary vote, leading members of the European People's Party have called for the agreement's immediate provisional implementation, arguing that Europe cannot afford prolonged uncertainty given current geopolitical challenges. Others have expressed concern that the recent vote focused on procedural rather than substantive issues regarding the Mercosur pact, warning that unnecessary delays could hinder economic opportunities for the EU.