MEPs Challenge EU-Mercosur Trade Pact at ECJ, Threatening Ratification

The ambitious trade pact between the European Union and Mercosur nations faces a significant procedural and political challenge as a group of Members of the European Parliament (MEPs) prepares to refer the agreement to the European Court of Justice (ECJ). This move, if successful, would suspend the entire ratification process, injecting considerable uncertainty into a deal intended to reshape trade relations across two continents and consolidate the EU’s global trade diversification strategy.

Led by Green MEPs Majdouline Sbai (France) and Saskia Bricmont (Belgium), alongside Manon Aubry (France) from The Left group, the proposed resolution aims to challenge the legality of the European Commission’s approach to the agreement. The core of their argument hinges on the Commission’s mandate, specifically questioning its authority to separate the trade component from other parts of the comprehensive agreement for ratification purposes. This “split” approach is widely anticipated to be adopted by the Commission to streamline the ratification process, avoiding the need for national parliaments to vote on the trade dimension.

• A group of MEPs is challenging the legality of the EU-Mercosur trade pact before the European Court of Justice (ECJ).
• The core of the challenge targets the European Commission’s proposed “split” approach for ratifying the agreement.
• This “split” approach aims to bypass national parliamentary approval for the trade aspects of the deal.
• Successful legal action could suspend the entire ratification process, creating significant uncertainty.
• Concerns are also raised regarding the agreement’s potential impact on EU regulatory sovereignty, environmental standards, and the agricultural sector.
• The deal is considered crucial by proponents for the EU’s global trade diversification and geopolitical strategy.

The Legal and Political Divide

Without the proposed split, ratification would require approval from EU national parliaments, several of which have expressed strong opposition. Notably, the Austrian and Dutch parliaments are reportedly against the deal, and French political forces have united in their opposition. Doubts about Italy’s commitment also persist. The resolution argues that by circumventing national parliamentary votes on the trade aspect, the Commission oversteps its mandate.

The Mercosur agreement, encompassing Argentina, Brazil, Paraguay, and Uruguay, aims to liberalize trade between these nations and the EU, creating a free trade area spanning 780 million people. It would gradually eliminate customs duties, currently ranging from 10% to 35%, on most products, promising substantial economic shifts.

Economic Stakes and Geopolitical Backdrop

For the European Commission and its proponents, including Germany, this agreement is a cornerstone of its broader strategy to diversify trade partners globally. This pivot comes amid a significant re-evaluation of its long-standing economic relationship with the United States. In this evolving geopolitical landscape, proponents argue that securing new trade alliances like Mercosur is critical for bolstering the EU’s economic resilience and strategic autonomy.

However, the MEPs driving the resolution also raise concerns about the agreement’s potential impact on EU regulatory sovereignty. They contend that the Mercosur countries have been granted oversight rights over all EU legislation related to the Green Deal, which could allow them to challenge such laws in court. This provision, critics argue, fundamentally undermines the EU’s capacity to autonomously set and enforce its environmental standards.

The agricultural sector represents a primary source of opposition, fearing unfair competition from Latin American products should the agreement proceed. Environmental provisions within the deal are also under scrutiny, with critics arguing they do not offer sufficient protection for the EU’s ecological objectives. Despite the confidence of the resolution’s proponents in securing support from at least 72 MEPs, largely from left-wing factions and French representatives, the broader political momentum in the current geopolitical climate appears to favor the deal’s progression, posing another significant challenge for the dissenting parliamentarians.