EU votes to challenge Mercosur trade deal

European Union lawmakers on Wednesday voted to challenge the recently concluded trade agreement with four South American countries in the bloc's top court, warning it could harm European farmers.

The European Parliament's move to contest the free-trade pact with the Mercosur trade bloc members — Argentina, Brazil, Paraguay and Uruguay — throws the deal's future into doubt just as it finally cleared a 25-year hurdle, reported Reuters.

By a narrow margin, members of the European Parliament in Strasbourg, France, approved — 334 to 324 — asking the Court of Justice of the EU to assess whether the agreement, supported by most member states and the European Commission, aligns with EU policy.

On Saturday, the EU secured its biggest trade pact to date with Mercosur, but the deal still needs formal ratification before it comes into force.

Led by France, critics contend the pact would flood the bloc with cut-price beef, sugar and poultry, squeezing EU farm producers who have mounted repeated demonstrations.

Supporters, including Germany and Spain, said the pact is vital to recoup lost business and diversify supply chains by securing access to key minerals.

Its signing was cast as a major strategic win for the EU, broadening the bloc's presence in a resource-rich region and strengthening long-term market access.

The deal scraps tariffs on over 90 percent of two-way trade, benefiting EU exports of cars, wine and cheese, while smoothing the path for South American beef, poultry, sugar, rice, honey and soybeans into the European market.

French Foreign Minister Jean-Noel Barrot welcomed the result of the vote in a post on social media, saying, "Parliament spoke in line with the position we've defended." He added: "France accepts the burden of saying no when necessary — and history often vindicates that choice. The fight goes on."

The European Commission said it was disappointed by the parliament's move to block the agreement.

"According to our analysis, the questions raised in the motion by the parliament are not justified because the commission has already addressed those questions and issues in a very detailed way," said Olof Gill, the commission's trade spokesman.

The Court of Justice of the EU will now assess whether the pact curbs the bloc's ability to set environmental and consumer health rules. Such reviews usually take about two years to deliver, and the decision could require changes to the agreement.

The EU could still put the deal into provisional effect pending the judgment and the parliament's approval, with lawmakers able to revoke it later, but the move would be politically fraught. Thousands of tractor-driving farmers protested outside the parliament on Tuesday in Strasbourg, ahead of the vote.

Germany's Chancellor Friedrich Merz said in a social media post that the parliament's move was "regrettable". "It misjudges the geopolitical situation. We are convinced of the legality of the agreement. No further delays. The agreement must now be applied provisionally," he wrote.