EU's Legal Battle Over Mercosur Trade Deal

The European Union's largest trade agreement with Mercosur is challenged by EU lawmakers in court, potentially delaying it by two years. The deal faces opposition from agricultural sectors fearing competition from imports. Backed by some EU members, the deal aims to improve trade amidst global tensions.

The European Union's contentious free trade agreement with Mercosur is facing legal challenges that could postpone its implementation. On Wednesday, EU lawmakers voted to take the matter to the bloc's top court, a move that threatens to derail the trade pact by two years.

France, the EU's primary agricultural producer, leads the opposition, fearing that an influx of cheap imports from Mercosur members like Argentina and Brazil could undermine European farmers. A group of 144 lawmakers has pushed for a judicial review on whether the agreement can be partially applied before full ratification by all EU member states.

Supporters, including Germany and Spain, argue the deal is vital to counter trade disruptions caused by U.S. tariffs under President Trump and reduce dependency on China. Despite backing from the European Parliament, the motion sees significant division, with 334 votes in favor, 324 against, and 11 abstentions.

(With inputs from agencies.)