EU Parliament Puts Brake on Mercosur Trade Deal Amid Legal Concerns

European Union lawmakers have halted the ratification of a major trade agreement with the Mercosur group due to legal concerns. The decision delays approval as the European Court of Justice reviews its compliance with EU treaties. The deal aims to create a large free trade zone by eliminating over 90% of tariffs.

The European Union's lawmakers have hit pause on the much-anticipated Mercosur trade agreement, citing legal reservations. In a narrow vote in Strasbourg, they decided to send the pact to the European Court of Justice to determine its alignment with EU treaties.

Signed recently after 25 years of negotiations, the deal aims to strengthen commercial ties amid global protectionism. However, the path to ratification is now delayed, as the court's decision might take months, leaving the European assembly unable to approve it meanwhile.

With stakes high, the agreement seeks to diminish tariffs on goods like Argentine beef and German automobiles, forming a massive free trade zone for over 700 million consumers. The decision reflects deep divisions within the EU, with countries like France voicing agricultural concerns and others pushing for immediate implementation.

(With inputs from agencies.)