The Mercosur Trade Agreement between the European Union and South American nations is facing further uncertainty after an EU lawmaker vote on Wednesday sent the agreement to the bloc’s top court for review.
In a tight vote in Strasbourg, France, the European Parliament narrowly approved submitting the long-awaited agreement to the Court of Justice of the European Union (CJEU). The result was 334 in favor, 324 against, and 11 abstentions. This phase delays full acceptance while the court determines whether the agreement is consistent with EU treaties, potentially adding months,or even years to the process.
A Deal 25 Years in the Making
The EU and Mercosur, which includes Argentina, Brazil, Paraguay, and Uruguay, formally signed the Mercosur Trade Agreement on Saturday, January 17, 2026, after more than a quarter-century of negotiations. The pact intends to establish one of the world’s largest free trade zones, involving over 700 million people.
It promises to eliminate more than 90% of tariffs on a wide range of goods, from Argentine beef and other agricultural products to German automobiles and industrial equipment. Supporters claim that it would increase trade, cut consumer prices, and counter rising global protectionism.
EU Lawmaker Vote Highlights Farmer and Environmental Worries
The EU lawmaker vote was prompted by concerns, particularly among farming communities, that the agreement may harm European producers if proper protections were not in effect. France and other agriculturally-intensive countries have long advocated for tighter safeguards. A cross-party group of MPs proposed the referral motion, citing potential limitations on the EU’s ability to implement its own rules.
Farmers demonstrated outside Parliament during the session, emphasizing the gap. While the European Commission regrets the decision and points out that final parliamentary consent is pending the CJEU ruling, which could take 18-24 months or more, the Commission emphasizes that provisional adoption of portions of the agreement is still an option in the interim.
Mixed Reactions Across Europe
German Chancellor Friedrich Merz, a strong supporter, voiced disappointment on social media.
“It misjudges the geopolitical situation. We are convinced of the legality of the agreement. No further delays. The agreement must now be applied provisionally,” Merz wrote.
EU leaders may address the path forward soon, potentially during discussions on broader international relations.
Strong Support in South America
The Mercosur Trade Agreement has widespread support in Mercosur member countries, and approval is expected to go smoothly. Bolivia, a recent member to the bloc, is not covered by this agreement but may join in the future. Venezuela remains suspended and will not participate.
The EU lawmaker vote adds procedural and legal obstacles, although provisional measures may allow for limited implementation while the court deliberates. The agreement’s ultimate success is now dependent on the CJEU’s ruling and following actions by EU organizations and member states.
