EU lawmakers vote to block Mercosur trade agreement over legal concerns

BRUSSELS (AP) — European Union lawmakers on Wednesday voted to block a major free trade agreement with the Mercosur group of South American countries over concerns about the legality of the deal.

In a vote in Strasbourg, France, the lawmakers narrowly approved sending the EU-Mercosur agreement to Europe’s top court to rule on whether it is in line with the bloc’s treaties. The lawmakers voted by 334 votes in favor to 324 against, with 11 abstentions.

Twenty-five years in the making, the long sought-after free trade agreement was just signed into effect to great fanfare on Saturday. It aimed to strengthen commercial ties in the face of rising protectionism and trade tensions around the world.

Supported by South America’s cattle-raising countries and European industrial interests, the accord is aimed at gradually eliminating more than 90% of tariffs on goods ranging from Argentine beef to German cars, creating one of the world’s largest free trade zones and making shopping cheaper for more than 700 million consumers.

France, Europe’s major agricultural producer, wanted stronger protections for farmers and has sought to delay the pact.

The European Commission said that it regrets the parliament’s decision. The assembly cannot vote to approve the pact until the European Court of Justice has ruled, and this could take months.

However, the EU’s powerful executive branch can provisionally apply the deal until then. EU leaders are expected to discuss the way ahead at an emergency summit focused on transatlantic relations on Thursday.

In a post on social media, German Chancellor Friedrich Merz described the EU parliament’s decision as “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,” Merz wrote.

Ratification is considered all but guaranteed in South America, where the agreement has broad support.

Mercosur consists of the region’s two biggest economies, Argentina and Brazil, as well as Paraguay and Uruguay. Bolivia, the bloc’s newest member, is not included the trade deal but could join in the coming years. Venezuela has been suspended from the bloc and isn’t included in the agreement.