EU parliament refers Mercosur free trade deal to bloc’s top court

The Court of Justice of the EU will determine if the accord with South American nations is compatible with the bloc’s policy.Published On 21 Jan 2026The ‍European Parliament has voted to refer the ⁠European Union’s ​contentious free trade agreement ‍with four South American countries to the bloc’s ‍top ⁠court, casting a veil of uncertainty over the future of the accord as it ended a 25-year wait.In a close ballot on Wednesday, lawmakers in the French city of Strasbourg voted 334 to 324 in favour of asking the Court of Justice of the European Union to determine whether the deal backed by most EU nations and the European Commission is compatible with the bloc’s policy.Recommended Stories list of 3 itemslist 1 of 3EU delays trade deal with South America’s Mercosur bloc as farmers protestlist 2 of 3Why has signing the EU-Mercosur deal been delayed?list 3 of 3EU states’ nod on Mercosur trade deal ends 25-year waitend of listThe EU signed its largest-ever trade pact on Saturday, after 25 years of negotiations.It eliminates tariffs on more than 90 percent of bilateral trade, and favours the European exports of cars, wine and cheese, while making it easier for South American beef, poultry, sugar, rice, honey and soya beans to enter Europe.Offsetting US tariffsSupporters, including Germany and Spain, argued the deal was essential to offset business lost to United States tariffs and to reduce reliance on China by ‍securing access to critical minerals.Its signature was hailed as a significant geopolitical victory for the EU in an age of US tariffs and surging Chinese exports, expanding the bloc’s foothold in a resource-rich region increasingly contested by Washington and Beijing.Opposers, including France, Poland and farmer groups, said the agreement would sharply increase imports of cheap beef, sugar and poultry, undercutting domestic farmers who have staged repeated protests.The EU executive said it “regrets” the European Parliament’s decision to bloc the deal with the South American trade bloc, known as Mercosur (Mercado Comun del Sur, or Southern Common Market) and comprised of Argentina, Brazil, Paraguay and Uruguay.