Mercosur deal faces fresh hurdle as EU Parliament backs court challenge

"A group of 144 lawmakers put forward a parliamentary motion to ask the EU Court of Justice to rule on whether the agreement can be applied before full ratification by all member states and whether its provisions restrict the EU's ability to set environmental and consumer health policies. The court typically takes around two years to deliver such opinions. The European Parliament backed the motion with 334 votes in favour to 324 against, with 11 abstentions."

"If referred to the court, the EU could still apply the pact provisionally pending the ruling and parliamentary approval. But doing so could prove politically difficult given the likely backlash, and the European Parliament would retain the power to annul it later. Supporters including Germany and Spain point to U.S. President Donald Trump's disruption of global trade. They argue the deal is essential to offset business lost to U.S. tariffs and to reduce reliance on China by securing access to critical minerals."

"A host of Irish MEP's voted in favour of the referral. However it was notable there were sharp differences among Irish members of the European People's Party (EPP). Fine Gael MEP Nina Carbery, an EPP member, welcomed the decision to seek legal scrutiny and said she voted in favour of the referral. "Today, I voted in favour of referring the EU-Mercosur Agreement to the European Court of Justice (ECJ) for a legal assessment. This vote was successfully passed," Carbery said in a statement."

The European Union signed its largest-ever trade pact with Mercosur members Argentina, Brazil, Paraguay and Uruguay. The agreement still requires approval before it can take effect. Opponents led by France, the EU's largest agricultural producer, say the deal will sharply increase imports of cheap beef, sugar and poultry and undercut domestic farmers who have staged repeated protests. A group of 144 lawmakers filed a parliamentary motion asking the EU Court of Justice to rule on provisional application and whether the pact limits the EU's ability to set environmental and consumer health policies. Supporters including Germany and Spain cite U.S. trade disruption, the need to offset lost business from U.S. tariffs, reduced reliance on China and access to critical minerals, while warning that Mercosur governments are losing patience after long negotiations.

Read at Irish Independent