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    Home > Finance > EU lawmakers refer EU-Mercosur trade agreement to top EU court
    Finance

    EU lawmakers refer EU-Mercosur trade agreement to top EU court

    Published by Global Banking & Finance Review®

    Posted on January 21, 2026

    1 min read

    Last updated: January 21, 2026

    EU lawmakers refer EU-Mercosur trade agreement to top EU court - Finance news and analysis from Global Banking & Finance Review
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    Tags:financial marketsInternational trade

    Quick Summary

    The EU Parliament has sent the EU-Mercosur trade agreement to the EU's top court, which could delay or derail the deal with South America.

    Table of Contents

    • EU-Mercosur Trade Agreement Overview
    • Details of the Trade Pact
    • Parliament's Legal Action

    EU Parliament Refers Controversial EU-Mercosur Trade Deal to Court

    EU-Mercosur Trade Agreement Overview

    BRUSSELS, Jan 21 (Reuters) - The European Parliament voted on Wednesday to refer the European Union's contentious free trade agreement with South America to the bloc's top court, a move that could delay the deal by two years and potentially derail it.

    Details of the Trade Pact

    The European Union signed its largest-ever trade pact with Mercosur members Argentina, Brazil, Paraguay and Uruguay on Saturday. The agreement still requires approval before it can take effect.

    Parliament's Legal Action

    (Reporting by Philip Blenkinsop and Inti Landauro)

    Key Takeaways

    • •EU Parliament refers trade deal to top EU court.
    • •The agreement involves Argentina, Brazil, Paraguay, and Uruguay.
    • •Potential two-year delay for the trade pact.
    • •The largest trade agreement signed by the EU.
    • •Legal action could derail the agreement.

    Frequently Asked Questions about EU lawmakers refer EU-Mercosur trade agreement to top EU court

    1What is the role of the European Parliament in trade agreements?

    The European Parliament reviews and approves trade agreements negotiated by the European Commission, ensuring they align with EU values and interests.

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