EU Courts Controversy: Legal Challenge Stalls Historic Mercosur Trade Deal

EU lawmakers have voted to challenge the European Union's free trade agreement with South America in the bloc's top court, potentially delaying its implementation by two years. The agreement, signed with Mercosur members, has polarized opinions within the EU, with France leading the opposition due to agricultural concerns.

In a significant move, EU lawmakers voted to challenge the European Union's landmark free trade agreement with South America in the bloc's top court. This decision could delay the already contentious deal by up to two years and potentially derail its implementation. The trade pact, the EU's largest, was signed with Mercosur members Argentina, Brazil, Paraguay, and Uruguay following 25 years of negotiation.

German Chancellor Friedrich Merz expressed regret over the vote, emphasizing its importance in offsetting business losses from U.S. tariffs and reducing reliance on China. Despite assurances from Germany and supportive nations like Spain, opposition led by France remains fierce, citing risks to domestic farming due to increased imports.

The European Parliament's close vote of 334 to 324 reflects deep-seated divisions, with France's farm unions celebrating the decision as a victory. The European Commission maintains the issues raised have been previously addressed and plans to consult with EU governments and lawmakers on future steps.

(With inputs from agencies.)