EU lawmakers vote to hold up Mercosur trade agreement over legal concerns

European lawmakers voted Wednesday to temporarily block ratification of a major free trade agreement between the European Union and South American Mercosur countries, raising questions about the deal’s legal standing.

The European Parliament narrowly approved sending the trade pact to the European Court of Justice by a vote of 334-324, with 11 abstentions. The decision means the parliament cannot approve the agreement until the court determines whether it complies with EU treaties, potentially delaying the process for months.

The EU-Mercosur free trade agreement, which was formally signed last Saturday after 25 years of negotiations, aims to eliminate more than 90% of tariffs on products ranging from Argentine beef to German cars. The deal would create one of the world’s largest free trade zones, connecting more than 700 million consumers across both continents.

European Commission President Ursula von der Leyen had made finalizing the agreement a central priority of her administration, successfully steering it through a crucial vote among EU leaders earlier this month. At the World Economic Forum in Davos, she emphasized the strategic importance of the pact, stating, “The more trading partners we have worldwide, the more independent we are.”

The agreement has faced significant opposition from agricultural interests, particularly in France, Europe’s leading agricultural producer. French officials have consistently sought stronger protections for farmers and have worked to delay implementation. Following the parliament vote, French Foreign Minister Jean-Noel Barrot expressed support for the decision on social media, writing, “France takes responsibility for saying no when it has to, and history often proves it right. The fight continues.”

The European Commission expressed strong disappointment with the parliament’s decision. Despite the setback, the EU’s executive branch retains the power to provisionally apply the agreement while awaiting the court’s ruling. EU leaders are expected to discuss next steps at an emergency summit on transatlantic relations scheduled for Thursday.

German Chancellor Friedrich Merz criticized the parliament’s vote as “regrettable” and said it “misjudges the geopolitical situation.” In a social media post, Merz added, “We are convinced of the legality of the agreement. No further delays. The agreement must now be applied provisionally.”

Bernd Lange, who heads the parliament’s committee on trade, called the vote “absolutely irresponsible” and “very harmful for our economic interests.” He suggested opponents should vote directly against ratification “instead of using delaying tactics under the guise of legal review.”

The EU-Mercosur agreement represents a significant attempt to strengthen commercial ties in the face of rising global protectionism and trade tensions. It would benefit both South America’s agricultural exporters and European industrial manufacturers by creating more predictable and open market access.

Ratification on the South American side is considered nearly certain, as the agreement enjoys broad support across Mercosur nations. The trading bloc consists of Argentina and Brazil—South America’s two largest economies—along with Paraguay and Uruguay. Bolivia, while Mercosur’s newest member, is not currently included in the trade deal but could join in the future. Venezuela remains suspended from the bloc and is excluded from the agreement.

The parliamentary maneuver to delay the deal highlights the complex tensions between the EU’s geopolitical ambitions for expanded trade networks and domestic concerns over agricultural competition and regulatory standards. As global trade patterns continue to shift amid growing economic nationalism, the fate of the EU-Mercosur agreement represents a critical test of Europe’s ability to advance its trade agenda.