BRUSSELS — A significant coalition of European lawmakers is actively attempting to obstruct the finalization of a long-anticipated trade agreement with Latin American nations. This group, consisting of over 100 Members of the European Parliament (MEPs), is set to introduce a motion on Friday that seeks a resolution requesting the Court of Justice of the European Union to evaluate the compatibility of the Mercosur trade pact with European treaties.
If this resolution is passed during the upcoming plenary session of the European Parliament, scheduled from November 24 to 27, it could jeopardize the European Commission’s efforts to finalize the deal before the Christmas deadline, which aims to establish one of the world’s largest free-trade areas, encompassing Brazil, Argentina, Paraguay, and Uruguay.
Concerns about treaty compatibility
Belgian Green MEP Saskia Bricmont emphasized the collaborative spirit by stating that “it is still possible to work constructively across our groups.” She further noted, “Beyond the sometimes divergent views on the pros and cons of the agreement with Mercosur, we must ensure that it is fully compatible with our European treaties.”
Should a majority of lawmakers endorse the resolution, the European Parliament would be required to await the Court’s ruling before proceeding to vote on the agreement. This judicial review process could significantly extend the timeline, as proceedings in Luxembourg are known to be protracted.
If the Court were to determine that the agreement is not legally sound, it would place the EU executive in a challenging position, especially given the contentious nature of the issue within the bloc. While it may not completely derail the deal, any necessitated amendments could potentially postpone the process by a year.
Legal implications of the trade deal
The coalition of lawmakers, which spans the EPP, S&D, Renew, the Greens, and the Left group, is particularly focused on a rebalancing mechanism included in the deal. This unprecedented clause in EU trade agreements allows either party to seek reparations through tariffs or quotas if they believe the other party has enacted measures that “nullify or substantially impair” the benefits of the agreement.
Additionally, they are advocating for a judicial ruling on the legal foundation for separating the trade and partnership components of the deal. This division has been introduced to facilitate a streamlined ratification process for the main trade provisions, which would only require approval from the European Parliament, bypassing national or regional parliaments.
Lawmakers are also pressing for the Court to assess whether the EU-Mercosur agreement aligns with the EU’s right to implement the precautionary principle. This principle aims to enable preventive actions in anticipation of potential environmental or health risks, an area of concern given fears that the agreement could undermine these safeguards.
Notably, many of the MEPs advocating for this resolution hail from countries that have historically opposed the substantial deal, including Poland, France, Belgium, and Ireland. Representing the EPP, the largest faction in the European Parliament, are Polish and French members such as Krzysztof Hetman, Marta Wcisło, and François-Xavier Bellamy. Other prominent figures include Pascal Canfin from Renew and S&D’s Raphaël Glucksmann, along with the Greens’ Majdouline Sbaï.
In the coming week, the Parliament is also expected to determine which of the trade and agriculture committees will take the lead on the Commission’s proposal concerning safeguards to address potential surges in imports of sensitive agricultural products that could adversely affect European markets.