EU–Mercosur Trade PACT UNDER THREAT: Deal Sent to Top Court in SHOCK MOVE

Описание: The EU–Mercosur mega trade deal just hit a major roadblock as the European Parliament sends it to the EU’s top court, risking years of delay and even collapse.
As leaders praise the agreement in Davos, its future in Brussels has suddenly become far more uncertain.

The European Parliament has voted to refer the EU–Mercosur free trade agreement to the EU Court of Justice. While the commercial core of the deal could still advance more quickly, the comprehensive agreement — which includes environmental, political, and cooperation clauses — now faces a prolonged legal and political test.

At issue are strict conditions on climate policy, deforestation, and broader regulatory alignment that have drawn fierce opposition from governments such as France and influential blocs inside the European Parliament. Legal scrutiny could delay the full implementation of the pact by up to two years, and in a worst-case scenario, render it politically unviable.

The agreement is effectively structured in two layers: a full, integral pact that requires ratification by all 27 EU member states, and an interim, trade-only chapter focused solely on market access and tariffs. The latter can move forward through EU institutions without unanimous approval by every national parliament, giving Brussels a possible path to partially activate the economic benefits while the broader deal is contested.

This development comes just days after the EU and Mercosur formally signed what has been described as their largest trade agreement ever, covering Argentina, Brazil, Paraguay, and Uruguay. In Davos, European Commission President Ursula von der Leyen highlighted the pact as a pillar of a “more independent Europe,” designed to diversify supply chains and deepen strategic links with Latin America.

Now, investors, governments, and businesses on both sides of the Atlantic are watching closely to see whether the political will exists to rescue the full agreement — or whether legal challenges and environmental concerns will tip the balance toward fragmentation or failure.

Key Takeaways:
European Parliament has referred the EU–Mercosur agreement to the EU Court of Justice.
Legal review could delay the full deal by up to two years and risk its viability.
Environmental and political clauses face strong resistance from several EU countries.
The trade-only commercial pillar may still move ahead with faster EU-level approval.
Outcome will shape EU–Latin America trade, investment, and geopolitical alignment.

Stay with Prime Report for continuous updates on the EU–Mercosur negotiations, global trade realignments, and their impact on markets and geopolitics.