Brussels: A major trade agreement between the European Union and the Mercosur bloc-comprising Brazil, Argentina, Paraguay, and Uruguay-has encountered yet another obstacle, delaying its final implementation. This development comes just days after the deal was officially signed, marking a significant setback in the 25-year-old negotiation process.
According to Deutsche Welle, the European Parliament decided on January 21 to send parts of the agreement to the European Court of Justice (ECJ) for a legality check before proceeding with a formal vote. The move was initiated by Austrian Green MEP Thomas Waitz, who expressed concerns over a mechanism that might allow Mercosur countries to challenge EU regulations if they perceive them as barriers to market access. Waitz emphasized the importance of the ECJ's advice to address these legal concerns.
The European Parliament's decision is expected to delay the final vote until after the ECJ delivers its ruling, a process that could take months or even years. In response, supporters of the agreement are considering interim solutions to move forward without waiting for Parliament's approval.
The provisional application of the agreement has been floated as a possibility, with German Chancellor Friedrich Merz and several Members of Parliament supporting the idea. The European Council has already approved this approach, with Council President Antonio Costa urging the European Commission to proceed. Provisional application would require at least one member state to ratify the deal, a step Paraguay is reportedly preparing to take.
Despite these efforts, concerns about the deal persist among some EU member states, including France, Poland, Austria, Ireland, and Hungary, which have voiced opposition or abstained from supporting the agreement. These countries, along with certain political factions, worry about the impact of cheaper, less regulated agricultural imports from Latin America on European markets. The European Commission has attempted to alleviate these fears by incorporating safeguards into the deal, but skepticism remains.
The European Parliament's final vote on the trade pact is now expected to be delayed further due to the ECJ's review. Even if the court clears the agreement, there is no assurance that Parliament will ultimately approve it. Meanwhile, the prolonged negotiations have tested the patience of Mercosur countries, with Paraguayan President Santiago Pena warning of the bloc's readiness to pursue alternative trade deals worldwide if the EU delays further.
The ongoing dispute underscores the EU's internal challenges in aligning its institutions on key decisions, with critics pointing to the European Commission's readiness to proceed without waiting for Parliament's approval as indicative of broader institutional rifts. As the EU grapples with these internal divisions, its Latin American partners remain poised to explore other global trade opportunities.