Mercosur trade deal delayed as European Parliament sends agreement to EU court

21 January 2026

The European Parliament decided on Wednesday to refer the Mercosur trade agreement to the European Court of Justice (ECJ) to assess its compatibility with EU treaties, a move that could delay the deal by over a year.

The Mercosur free trade agreement was signed last Saturday in Paraguay and would create the largest free trade area in the world. Final approval, however, still requires the consent of the European Parliament. In a narrow vote of 334 to 324, MEPs in Strasbourg on Wednesday opted to postpone that decision until the ECJ has issued its opinion.

As a result, parliamentary consideration of the agreement is suspended until the ECJ issues its ruling, a process that on average takes around 18 months. The European Commission does, however, retain the option of provisionally applying the agreement while awaiting the court’s ruling.

The dispute revolves around a mechanism in the deal that would allow the Mercosur countries - Brazil, Argentina, Paraguay and Uruguay - to challenge EU legislation that threatens the market access granted under the agreement, according to Euractiv. That could include future sustainability rules, critics of the agreement warn.

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belganewsagency.eu

Setback for European Commission

The delay has been welcomed the European agricultural sector, which fears the deal would put EU farmers at a disadvantage. Farmers have been protesting against the agreement in Brussels and Strasbourg for months. Environmental organisations have also opposed the deal, citing concerns over imports produced using banned pesticides and the potential impact on the Amazon rainforest.

The vote represents a significant setback for the European Commission and its president Ursula von der Leyen, who had hoped for swift approval of the agreement as a counterweight to the threat of a trade war with the United States under president Donald Trump.

Bernd Lange, chair of the Parliament’s international trade committee, strongly criticised the outcome. "Absolutely irresponsible. This is an own goal," he wrote on X. "Very harmful for our economic interests and standing. Team Europe putting itself offside."