EU–Mercosur trade agreement legal basis to be assessed

After nearly 25 years of negotiations, the EU–Mercosur trade agreement was narrowly approved by EU member states on January 9, meeting the required qualified majority. However, the process faced a setback when the European Parliament voted by a slim margin (334 in favor, 324 against) to refer the agreement to the Court of Justice of the EU to assess its legal basis.

The free trade deal covers a market of 780 million consumers and would boost EU exports such as cars, machinery, and beverages to Brazil, Argentina, Uruguay, and Paraguay. At the same time, it would facilitate imports of agricultural products like beef, sugar, rice, honey, and soy into the EU, triggering strong opposition from European farmers concerned about lower production costs in Latin America. Countries with strong agricultural sectors, including France, Poland, and Ireland, oppose the deal, while Germany, Spain, and several Nordic states support it, viewing it as an opportunity amid rising competition from China and trade tensions with the United States. 

Regarding Wednesday’s vote on referring the agreement to the Court of Justice of the EU, it is clarified that 334 MEPs (50%) voted in favor of the referral, 324 (48%) voted against, and 11 (2%) abstained. A total of 669 MEPs participated in the vote, while 50 did not take part.

Within the European People’s Party (EPP), which includes the MEPs of New Democracy, 181 out of 188 voted, with the majority opposing the referral.
In the Socialists and Democrats (S&D) group, which includes PASOK, 125 out of 136 voted, again with the majority voting against.
From the Patriots for Europe group, 79 out of 85 voted, with an overwhelming majority supporting the referral.
Among the European Conservatives and Reformists, 74 out of 79 voted, with votes almost evenly split and a slight majority against.
Finally, in the Renew Europe group, 70 out of 75 participated, with the majority voting against the referral.