GBAF Logo
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

Add as preferred source on Google
EU lawmakers refer EU-Mercosur trade agreement to top EU court
financial markets International trade
Global Banking & Finance Awards 2026 — Call for Entries

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

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

What 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.

Tags

Related Articles

Image for Trump says he speaks with Putin and Zelenskiy -Fox News

Trump says he speaks with Putin and Zelenskiy -Fox News

Image for Trump tells Fox News Iran can call US if it wants to negotiate

Trump tells Fox News Iran can call US if it wants to negotiate

Image for Australia's Wong to visit Japan, China, South Korea to discuss energy security

Australia's Wong to visit Japan, China, South Korea to discuss energy security

Image for Hungary's Magyar to meet EU's von der ​Leyen for talks on EU funds this week

Hungary's Magyar to meet EU's von der ​Leyen for talks on EU funds this week

Image for Switzerland angers Italy by claiming costs of treating Crans-Montana fire victims

Switzerland angers Italy by claiming costs of treating Crans-Montana fire victims

Image for Russian defence minister visits North Korea

Russian defence minister visits North Korea

More from Finance

Explore more articles in the Finance category

Image for Fertiliser plant in Russia's Vologda region damaged in Ukrainian drone attack, governor says
Fertiliser plant in Russia's Vologda region damaged in Ukrainian drone attack, governor says
Image for Close Brothers will not take legal action against Britain's car finance redress scheme, Sky News reports
Close Brothers will not take legal action against Britain's car finance redress scheme, Sky News reports
Image for Germany's far-right AfD rises to record 28%, INSA poll shows
Germany's far-right AfD rises to record 28%, INSA poll shows
Image for German government suspects Russia of Signal attack targeting politicians, sources say
German government suspects Russia of Signal attack targeting politicians, sources say
Image for Romania finds parts of second drone after overnight Russian attack on Ukraine
Romania finds parts of second drone after overnight Russian attack on Ukraine
Image for China condemns EU's inclusion of Chinese entities in sanctions package against Russia
China condemns EU's inclusion of Chinese entities in sanctions package against Russia
Image for Russian parliament speaker in North Korea to mark Pyongyang's troop deployment in Ukraine war
Russian parliament speaker in North Korea to mark Pyongyang's troop deployment in Ukraine war
Image for Macron reaffirms efforts to reopen Strait of Hormuz, as TotalEnergies warns of energy shortages
Macron reaffirms efforts to reopen Strait of Hormuz, as TotalEnergies warns of energy shortages
Image for France's Macron says EU mutual assistance clause is unambiguous
France's Macron says EU mutual assistance clause is unambiguous
Image for US to let Venezuela pay Maduro's lawyer in drug trafficking case
US to let Venezuela pay Maduro's lawyer in drug trafficking case
Image for Italy votes down equal parental leave while fathers redefine their role online
Italy votes down equal parental leave while fathers redefine their role online
Image for German auto industry faces even tougher competition as China economy slows
German auto industry faces even tougher competition as China economy slows
View All Finance Posts