Free trade with South America
EU Parliament calls because Mercosur agreement ECJ
The agreement between the EU and the Mercosur states has just been ceremoniously signed – now the setback: the free trade agreement must be reviewed by the European Court of Justice – and could fail completely.
The European Parliament has decided to have the EU free trade agreement with countries of the South American Mercosur alliance reviewed by the European Court of Justice (ECJ). A narrow majority of MPs in Strasbourg voted for a corresponding motion.
Parliament was divided on the decision: 334 voted for a review, 324 against. Eleven MPs abstained. With the resolution, Parliament calls on its President to appeal to the ECJ and ask for an opinion on the Mercosur agreement.
The request for a legal review was mainly submitted by parliamentarians from the Left and the Greens. They criticized the splitting of the agreement into two parts: On the one hand, it consists of a partnership agreement that must also be approved by the EU member states, and on the other hand, of a trade part that only requires the approval of the EU Parliament. It was said that this was a bypass of national parliaments.
There are also fears that EU standards in consumer protection, the environment and animal welfare could be compromised.
Agreement could come into force for the time being
Waiting for the ECJ opinion could significantly delay the ratification process of the agreement with the four Mercosur states Brazil, Argentina, Paraguay and Uruguay. Theoretically, however, it could be applied provisionally beforehand if the EU Commission makes a corresponding decision.
Chancellor Friedrich Merz spoke out in favor of such a provisional application of the trade agreement. He called the EU Parliament’s decision to have the agreement reviewed by the ECJ “regrettable”. Brussels therefore misunderstands the geopolitical situation.
The chairman of the European SPD, René Repasi, had warned that the agreement could temporarily come into force because of the appeal to the ECJ. The environmental organization Greenpeace warned that it would be scandalous and anti-democratic if the Commission were to apply the trade agreement without parliamentary approval.
Ahead of the vote, EU Trade Commissioner Maros Sefcovic made it clear that no decision on provisional application had been made and the focus was on gaining Parliament’s support.
More than 25 years of negotiations
The agreement was signed on Saturday in Paraguay after more than 25 years of negotiations. The aim is to stimulate the exchange of goods and services by reducing trade barriers and tariffs. This particularly affects cars, agricultural products and raw materials.
The President of the Association of the German Automotive Industry VDA, Hildegard Müller, expressed her dismay at the delay. The EU Parliament is sending “a devastating signal”.
Examination can take years
How long it will take for the Luxembourg judges to submit their assessment is unclear. There are no maximum deadlines. From Luxembourg it was said that the last expert opinions lasted between 16 and 26 months. If the Court finds that the agreement is incompatible with EU law, it can only come into force if it is amended.
A close vote was expected in parliament. During the meeting, European farmers opposed to the deal protested outside the parliament building.
