Credited from: LATIMES
The European Parliament voted on January 21 to refer the recently signed Mercosur free trade agreement to the top court of the EU, creating legal uncertainty around the pact finalized with Brazil, Argentina, Uruguay, and Paraguay. In a close vote of 334 to 324, lawmakers in Strasbourg aimed to assess whether the deal aligns with EU policies and regulations, which has been a contentious issue for many member states, particularly those with strong agricultural sectors, according to Le Monde and Al Jazeera.
The legal review process required by the EU Parliament could delay ratification for months, which has raised concerns among supporters of the agreement. The deal was initially seen as a significant step in furthering European global trade interests, with proponents highlighting it as essential to counteract U.S. tariffs and reduce reliance on Chinese imports, according to India Times and Los Angeles Times.
Farmers' groups, particularly from France, celebrated the development, noting concerns over the potential influx of South American agricultural products, which they argue would undermine their livelihoods and local food safety standards. "We've been on this for months, for years," remarked Quentin Le Guillous, a representative of French farmers, celebrating the Parliament's decision, according to Le Monde and Al Jazeera.
The European Commission, which supports the agreement, expressed regret over the Parliament's decision, arguing that the legal concerns raised had already been addressed in negotiations. Trade spokesman Olof Gill emphasized that the Commission's stance remains that the agreement is lawful and necessary to enhance EU trade dynamics in a competitive global market, according to India Times and Los Angeles Times.
With the EU Court of Justice now set to examine the deal's compatibility with EU law, there are significant concerns over whether the provisions covering environmental standards and consumer protections could necessitate amendments. This situation could further complicate the provisional application of the pact additionally poised to receive broader support in South America, where it reflects a significant milestone in regional trade relations, according to Le Monde and Al Jazeera.