EU Parliament to Vote on Controversial Mercosur Trade Deal

EU lawmakers will vote on challenging a major trade deal with South American bloc Mercosur. Signed with Argentina, Brazil, Paraguay, and Uruguay, the deal faces opposition from France, citing increased imports affecting agriculture. Legal challenges could delay the deal, pending EU Court of Justice's decision.

On Wednesday, EU lawmakers will cast their votes on whether to challenge the European Union's contentious free trade agreement with South America in the bloc's top court. This move could potentially delay the agreement's implementation by two years, or even derail it entirely.

The European Union recently signed its largest-ever trade pact with Mercosur members Argentina, Brazil, Paraguay, and Uruguay. However, this agreement still requires approval before it can be enacted. Opposition, notably led by France, the EU's largest agricultural producer, argues that the deal would significantly increase imports of cheap beef, sugar, and poultry, undercutting domestic farmers who have staged recurrent protests.

A cohort of 144 lawmakers has lodged a legal challenge, requesting the EU Court of Justice to determine whether the agreement could be enforced prior to full ratification by all member states, and whether its provisions limit the EU's ability to set environmental and health policies. Meanwhile, supporters from countries like Germany and Spain highlight the necessity of the deal to counteract U.S. tariffs and reduce reliance on China by securing critical minerals.

(With inputs from agencies.)