• The EU Parliament voted 334 to 324 to refer the Mercosur trade deal to the Court of Justice.
• The ruling could delay the agreement, which aims to create one of the world's largest free trade areas.
• Opposition from farmers' groups has intensified over concerns of cheap imports impacting local agriculture.
• Several EU leaders express disappointment over the parliament's decision, emphasizing the need for swift ratification.
• The deal was seen as a strategic move against U.S. tariffs and to enhance EU's economic standing in a competitive global market.

The European Parliament has made a significant move by voting 334 to 324 in favor of referring the recently signed EU-Mercosur free trade agreement to the Court of Justice of the European Union (CJEU). This decision casts a shadow of uncertainty over the future of a deal that was touted as a landmark achievement after 25 years of negotiations, aimed at enhancing economic ties with the South American bloc of Argentina, Brazil, Paraguay, and Uruguay, according to Le Monde and Al Jazeera.

This referral follows intense lobbying and demonstrations from European farmers, particularly from France, who oppose the deal over fears that it will increase imports of beef and other agricultural products, undermining local markets. Farmers celebrated the parliament's decision as a victory after months of protest, reflecting a deep-seated concern over competition from imported goods produced under different standards, according to India Times and Los Angeles Times.

The legal challenge focuses on whether the agreement aligns with EU treaties, particularly the mechanisms that allow parts of the treaty to be provisionally applied before all member states ratify it. The parliament's action effectively stalls any immediate ratification, putting the deal in a precarious position as the court's ruling may take months, according to Le Monde.

EU leaders such as German Chancellor Friedrich Merz have expressed disappointment, arguing that the decision misjudges the geopolitical landscape, where the EU must secure new trade partnerships amid rising global competition. The deal is viewed as essential for countering U.S. tariffs and reducing dependency on China, highlighting the urgent need for the EU to enhance its economic presence in South America, according to Los Angeles Times and India Times.