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Mercosur trade deal in limbo after EU parliament asks top court to weigh in

EU Parliament Mercosur The European Union European Union Europe Brussels

Farmers react as the EU parliament's vote result is announced during a protest against the free trade agreement between the European Union and the Mercosur countries, on the day of a vote on a referral to the courts, in Strasbourg on 21 January, 2026. © AFP - ROMEO BOETZLE

The European Union's parliament voted on Wednesday to refer a freshly signed trade deal with the South American Mercosur trade bloc to the EU's top court, casting the hard-fought accord into legal limbo.

Signed on Saturday with Brazil, Argentina, Uruguay and Paraguay, the pact to create one of the world's largest free trade areas has been fiercely opposed by farmers' groups backed by France and others.

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