European Parliament sends Mercosur free trade deal to EUs highest court

The European Parliament has voted to refer the EU’s free trade agreement with four South American countries to the Court of Justice of the European Union for review. The decision was made after 25 years of negotiations, and it marks a significant development in the accord’s future.

The agreement eliminates tariffs on more than 90% of bilateral trade between the EU and the four South American countries - Argentina, Brazil, Paraguay, and Uruguay. It also favors the export of European goods such as cars, wine, and cheese, while making it easier for South American products like beef, poultry, sugar, rice, honey, and soya beans to enter the EU.

The agreement was signed on Saturday, following years of negotiations between the EU and the Mercosur trade bloc. The EU executive has expressed regret over the European Parliament’s decision to refer the deal to the Court of Justice for review.

The court will now determine whether the provisions of the agreement are compatible with the EU’s policies, specifically regarding environmental and consumer health regulations. The ruling is expected to take around two years to deliver, and it could potentially force amendments to the accord.

The European Parliament has the power to annul the agreement if necessary, but doing so may be politically challenging given the potential backlash from farmers and other stakeholders who have expressed concerns about the impact of the deal on domestic industries. Thousands of farmers participated in a protest outside the European Parliament in Strasbourg ahead of the vote.

Source: Al Jazeera