Key points
- Legal challenge could delay pact by up to two years.
- France opposes deal, fearing cheap imports hurt domestic farmers.
- Court ruling examines environmental and consumer policy limitations.
- Germany and Spain support pact to offset U.S. trade disruptions.
BRUSSELS: European Union lawmakers will vote on Wednesday on whether to mount a legal challenge against the bloc’s controversial free trade agreement with the South American Mercosur countries, a move that could delay the pact by up to two years or potentially derail the EU’s largest-ever trade deal altogether.
The deal, signed last Saturday with Argentina, Brazil, Paraguay, and Uruguay, is the EU’s largest-ever trade agreement and requires approval before it can take effect, reports Reuters.
Opponents, led by France the bloc’s largest agricultural producer warn that the pact would sharply increase imports of cheap beef, sugar, and poultry, threatening domestic farmers who have staged repeated protests.
A group of 144 lawmakers has lodged a legal challenge with the EU Court of Justice, questioning whether the agreement can be applied before ratification by all member states and whether its provisions limit the EU’s ability to enforce environmental and consumer protection policies. Court rulings typically take around two years.
Even if referred, the EU could provisionally implement the pact, though political backlash may make this difficult. The European Parliament would still have the power to annul the agreement later.
Backing the deal, Germany and Spain argue it is crucial to counter U.S. trade disruptions under President Donald Trump, reduce dependency on China, and secure access to critical minerals. Supporters also warn that Mercosur governments are losing patience after years of negotiations.
