EU lawmakers vote to launch legal challenge to Mercosur trade deal
The opponents say the deal will increase cheap imports, undercutting the domestic farmers who have staged repeated protests
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[BRUSSELS] European Union lawmakers voted on Wednesday (Jan 21) to challenge the EU’s contentious free trade agreement with South America in the bloc’s top court, a move that could delay the deal by two years and potentially derail it.
The EU signed its largest trade pact with Mercosur members Argentina, Brazil, Paraguay and Uruguay on Jan 18, and the agreement still requires approval before it can take effect.
The opponents, led by France, the EU’s largest agricultural producer, said that the deal will sharply increase imports of cheap beef, sugar and poultry, undercutting domestic farmers who have staged repeated protests.
Legal challenge
A group of 144 lawmakers put forward a parliamentary motion to ask the EU Court of Justice to rule on whether the agreement can be applied before full ratification by all member states, and whether its provisions restrict the EU’s ability to set environmental and consumer health policies.
The court typically takes around two years to deliver such opinions.
The European parliament backed the motion with 334 votes in favour to 324 against, and 11 abstentions.
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If referred to the court, the EU could still apply the pact provisionally, pending the ruling and parliamentary approval. But doing so could prove politically difficult given the likely backlash, and the European parliament would retain the power to annul it later.
Supporters, including Germany and Spain, point to US President Donald Trump’s disruption of global trade. They argue that the deal is essential to offset business lost to the US tariffs, and to reduce reliance on China by securing access to critical minerals.
They also warn that Mercosur governments are losing patience with the EU after years of negotiations. REUTERS
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