The landmark EU-Mercosur deal has been referred to the European Court of Justice by Parliament, on the argument that the trade part of the agreement has been split from the rest of the deal in order to circumvent ratification from member states’ parliaments.
The deal, which has been in negotiations for 20 years, was finally signed in Asunción, Paraguay on Saturday by Commission President Ursula von der Leyen.
The deal with the Mercosur countries (Brazil, Argentina, Uruguay and Paraguay) aims to ease free trade between the two blocs, reducing key trade barriers.
Nevertheless, it has now been referred to the Court of Justice, through a resolution in the European Parliament. The vote on this resolution was tight, with 334 MEPs voting in favour of referring it to the court, 324 voting against, and 11 abstentions.
A court case in the European Court of Justice takes an average of 17 months.
MEPs who proposed the referral argue that splitting the deal, and leaving its trade elements to be approved only by the EU Council and Parliament, does not allow member states’ national parliaments enough of a say, and is therefore unlawful.
Controversy around the deal
The deal has been controversial for a long time. In particular, it has faced strong opposition from Ireland, Hungary and France.
The argument which is often made against the deal is that it allows cheap Mercosur-made goods into Europe, creating unfair competition with European farmers.
This controversy has led to widespread protests in major cities, such as Paris and Strasbourg, against the deal.
