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

Al JazeeraCenterEN 2 min read 100% complete by Al Jazeera Staff,News AgenciesJanuary 21, 2026 at 02:52 PM

AI Summary

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The European Parliament voted on Wednesday in Strasbourg to refer the EU's free trade agreement with Mercosur (Argentina, Brazil, Paraguay, and Uruguay) to the Court of Justice of the European Union. The court will determine if the agreement is compatible with EU policy. The deal, signed after 25 years of negotiations, aims to eliminate tariffs on over 90% of bilateral trade, benefiting European exports like cars and South American agricultural products. Supporters argue it's crucial to offset US tariffs and reduce reliance on China, while opponents, including farmer groups, fear increased cheap imports will undercut domestic producers. The EU executive expressed regret over the Parliament's decision.

Key Entities & Roles

Key Player Opposition Context

Spain 40% Paraguay 40% Uruguay 40% Germany 40% Brazil 50% Argentina 50% United States ×260% China ×260% Court of Justice of the European Union ×280% Mercosur (Mercado Comun del Sur, or Southern Common Market) ×485% European Parliament ×390% European Union ×795%

Keywords

free trade agreement 100% mercosur 90% eu parliament 80% court of justice of the eu 70% trade pact 60% european commission 50% tariffs 50% international trade 40%