EU Parliament to Vote on Judicial Review of Mercosur-EU Trade Agreement Shortly After Signing
The European Parliament will vote on June 21 regarding judicial review of the Mercosur-EU trade agreement days after its scheduled signing on June 17, potentially delaying the treaty's implementation.
- • European Parliament vote on June 21 to decide on judicial review of Mercosur-EU agreement.
- • Court of Justice of the European Union will assess legal foundations of the treaty.
- • Judicial review approval could delay implementation by 16-18 months.
- • Brazil’s National Congress approval could allow treaty enactment without other Mercosur countries.
- • Brazil launched an online platform to help businesses identify export opportunities under the agreement.
Key details
The Mercosur-European Union free trade agreement, long negotiated for over 26 years, approaches a critical phase as the European Parliament is set to vote on June 21 on requests to submit the agreement to the Court of Justice of the European Union (CJEU) for legal evaluation. The vote comes just days after the treaty is scheduled to be signed on June 17 in Asunción, Paraguay. The CJEU’s assessment will determine if the treaty’s legal foundations are sound; a negative opinion would prevent the treaty’s implementation unless amended.
Approval of the judicial review request, requiring only a simple majority among the 720 Members of the European Parliament (MEPs), could delay the treaty's enactment by 16 to 18 months, typical for such judicial evaluations. About 30% of the Parliament consists of members from countries that had rejected the agreement in the European Council, though voting preferences remain internally diverse. After signing, the treaty must pass internal ratification by legislative bodies from both the EU and Mercosur countries to take effect.
The agreement has been split into commercial and political components with different approval processes; the commercial part, covering tariff reductions and free trade, requires only the European Parliament’s simple majority approval and ratification by Mercosur’s national parliaments. Importantly, a clause permits the treaty to enter into force if the Brazilian National Congress and the European Parliament approve it, bypassing the need for other Mercosur countries’ deliberations.
In Brazil, the president of the Foreign Relations Commission, Nelsinho Trad, has stated that efforts in Congress aim to approve the agreement by July 2026 to enable free trade in the year’s second half. Concurrently, Brazil’s Ministry of Development, Industry, Commerce, and Services (MDIC) has launched an online "Painel de Oportunidades Mercosul–União Europeia" platform to assist businesses in capitalizing on the agreement’s benefits by consolidating data on export opportunities, tariffs, and regional market presence.
Tatiana Prazeres, Secretary of Foreign Trade, emphasized the platform’s role by declaring, “The agreement with the European Union is the most significant ever signed by Mercosur. To reach its full potential, it is essential to convert commitments into concrete opportunities.” This initiative is part of the broader effort to translate the trade agreement into tangible economic advantages for Brazilian exporters across various states.
The Mercosur-EU trade deal represents a landmark commercial development for Brazil and the region, with the upcoming European parliamentary vote and judicial scrutiny being pivotal milestones influencing the timeline and implementation outlook.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
