EU–Mercosur trade pact: Parliament sends deal to EU court, farmers celebrate while exporters flag risks – The Times of India

The European Parliament has voted to refer the recently signed EU-Mercosur free trade agreement to the bloc’s top court, pushing the long-negotiated pact into legal uncertainty just days after it was sealed, according to an AFP report.Lawmakers in Strasbourg voted 334 to 324 in favour of asking the Court of Justice of the European Union (CJEU) to examine whether the agreement complies with EU rules. The move follows the signing of the deal on Saturday with Brazil, Argentina, Uruguay and Paraguay, aimed at creating one of the world’s largest free trade areas.

The decision was greeted with celebration by farming groups, particularly from France, which has led opposition to the pact over concerns about agricultural imports. Hundreds of farmers gathered with tractors outside the European Parliament ahead of the vote and cheered as the result was announced.“We’ve been on this for months and months, for years,” Quentin Le Guillous, head of a French young farmers’ group, told AFP. “Tonight, I’m going home, I’m going to kiss everyone, and I’m going to tell my kids, ‘I got it, we got it, we can be proud.’”The court referral deals a setback to the European Commission, which negotiated and champions the agreement. Commission President Ursula von der Leyen had earlier described the pact as a “historic deal,” especially at a time when countries are seeking new trade partners amid tariff threats from the US administration.The Commission said it “regrets” the parliament’s decision. Trade spokesman Olof Gill said the questions raised by lawmakers were “not justified,” arguing that the Commission had already addressed concerns in detail.At the heart of the legal challenge is whether the agreement can be partially applied before full ratification by all EU member states, and whether it improperly limits EU powers on environmental and food-safety standards.The decision also drew criticism from industry. Hildegard Mueller, head of Germany’s auto industry group VDA, said the vote sent a “devastating sign” and risked alienating Mercosur partners at a time of heightened geopolitical uncertainty.Germany, Spain and Nordic countries back the deal, viewing it as a way to boost exports amid competition from China. German Chancellor Friedrich Merz said after the vote: “We are convinced of the legality of the agreement. No more delays. The agreement must now be provisionally applied.”However, France, Poland, Austria, Ireland and Hungary remain opposed, citing risks to domestic agriculture. French Foreign Minister Jean-Noel Barrot said, “The fight continues to protect our agriculture and guarantee our food sovereignty.”The EU-Mercosur deal would ease tariffs on more than 90 per cent of bilateral trade, favouring European exports such as cars, wine and cheese, while opening EU markets further to South American beef, poultry, sugar and soy.Together, the EU and Mercosur account for around 30 per cent of global GDP and more than 700 million consumers.