EU-Mercosur Trade Deal Nears Provisional Launch Despite Parliament and Court Challenges

After more than 25 years of negotiations, the European Union and the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay) have moved forward with their landmark trade agreement — even as deep political resistance and legal hurdles threaten its full implementation.

In early January, the Council of the EU formally endorsed the EU-Mercosur Partnership Agreement and Interim Trade Agreement, allowing the EU to sign and begin applying key parts of the deal provisionally — such as tariff reductions and trade liberalisation measures — before full ratification. This provisional approach aims to capture economic benefits earlier while member states complete national approval procedures.

However, the agreement now faces major political battles:

The European Parliament voted narrowly to refer the agreement to the Court of Justice of the EU (CJEU) to assess its compatibility with EU treaties — a move expected to delay full ratification by roughly 18–24 months. This referral came amid opposition from MEPs concerned about legal, environmental and farmers’ protection issues.

Strong objections have come from France, Ireland and other member states worried about agricultural competition and standards, even as supporters urge provisional application to prevent further delays and boost EU-Mercosur trade.

Despite these disagreements, EU leaders are weighing temporary implementation of trade rules — essentially letting parts of the interim agreement take effect ahead of full parliamentary consent — to avoid indefinitely shelving the deal after decades of talks.