EU Parliament Refers Mercosur Trade Deal to CJEU Amid Divisions

The European Parliament has referred the EU-Mercosur trade agreement to the Court of Justice of the EU (CJEU), creating fresh hurdles for its ratification. The measure passed on Wednesday with a narrow tally of 334 votes in favour, 324 against and 11 abstentions, led by a small left-wing bloc. Although it does not stop the process outright, the move signals deep divisions over a pact sealed last Saturday in Asunción following over 25 years of talks.

At issue is the agreement's rebalancing clause, enabling Mercosur nations—Argentina, Brazil, Uruguay and Paraguay—to demand remedies if EU rules on environmental or consumer standards shift post-ratification and impact trade terms. Opponents claim it erodes the bloc's regulatory powers and clashes with core EU laws.

France heads resistance among member states, insisting Mercosur producers match EU environmental and health rules to avoid distorting markets. French and Catalan farmers protested the deal vehemently, blocking access routes to Andorra on multiple occasions. France's stance leaves Andorra's own EU association deal in uncertain territory, as Paris might back it more firmly without Mercosur concerns.

European Commission Vice-President Teresa Ribera called the referral valid but urged progress. "We must respect the decision, but we will work in parallel to enable provisional application of the treaty," she stated, noting efforts to curb additional delays.

The setback hits as the EU navigates US tariff warnings from President Donald Trump, including his remarks on Greenland that stirred sovereignty debates. Proponents had hailed the Mercosur pact as a stand for global trade norms. No timetable exists yet for the CJEU's ruling.