UPDATE: EU-Mercosur trade deal sent to European Court and faces uncertain future

The long-debated EU-Mercosur trade agreement may face significant delays, and its future now rests in the hands of the European Court of Justice following a tense vote in the European Parliament.

The trade deal, which seeks to establish a free-trade zone between the European Union and the Mercosur bloc, comprising Brazil, Argentina, Uruguay, Paraguay, and associated members, was referred to the Court to determine whether it aligns with existing EU legislation.

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The move comes shortly after EU Commission President Ursula von der Leyen travelled to Paraguay to sign the treaty, which requires ratification by the European Parliament before it can take full effect. An interim agreement came into force upon signing.

The referral was approved by a narrow margin. A total of 334 MEPs supported sending the treaty for legal review, while 324 opposed it, 11 abstained, and 51 were absent.

The Court is now tasked with assessing whether the treaty, as currently drafted, complies with EU law.

Opponents of the agreement have expressed concerns that it may fall short of environmental and climate obligations. There are also questions over whether food production standards in Mercosur countries meet those required within the EU.

Local voices in Tipperary engaged with the topic on Monday evening when Mattie McGrath TD hosted a meeting at The Hill Inn in Cahir with Michael McNamara MEP to discuss the potential implications of the Mercosur deal.

Deputy McGrath described the event as "very informative and engaging," noting contributions from Dale Crammond of Meat Industry Ireland and Conor O’Leary, Munster Organiser with the IFA.

Commenting on the EU parliamentary decision today, Michael McNamara MEP stated, "Mercosur Agreement and Interim Trade Agreement is referred to the European Court to test its legality. A small victory for both those who oppose this betrayal of European farmers and those who believe in rule of law in these strange times."

The outcome represents a pause in what had been a contentious push to expand EU trade relations with South America.

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