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A group of MEPs is preparing to table a resolution at the European Parliament aimed at referring the Mercosur agreement to the Court of Justice of the EU, according to two sources familiar with the issue. If the EU court were to be seized, it would suspend the ratification process of the deal.
Green MEPs Majdouline Sbai (France) and Saskia Bricmont (Belgium), along with Manon Aubry (France) from The Left group, are leading the initiative.
According to one of the sources, the resolution will argue that the European Commission’s mandate does not allow it to split the agreement for ratification purposes.
This approach — which is widely expected to be adopted by the Commission on Wednesday when the College of Commissioners approves the deal — would separate the trade component from the rest of the agreement to facilitate an easier ratification process.
Without this split, EU national parliaments would be required to vote on the trade dimension. Austrian and Dutch parliaments appear opposed to the agreement reached by the Commission last December. French political forces are also united in their opposition to the deal. Italy’s commitment to the deal has also been in some doubt.
The agreement concluded by the Commission with the Mercosur countries — Argentina, Brazil, Paraguay, and Uruguay — would liberalise trade between the EU and these nations.
The free trade area will cover 780 million people, with customs duties currently ranging between 10% and 35% gradually disappearing on most products.
New geopolitical context
For the Commission and its supporters, such as Germany, this agreement is key to its strategy of diversifying trade partners worldwide, amid a major rethinking of its relationship with its historic US partner.
The MEPs behind this resolution initiative are confident of securing the support of 72 members, mostly from the left-wing side of the Parliament and among the French MEPs, to back the proposal.
Once these signatures are obtained, the proposal can be submitted for a vote by the other members of the Parliament. That will be another challenge, as the new geopolitical context currently favours support for the deal.
The upcoming resolution will also argue that the Mercosur countries have been granted oversight rights over all EU legislation related to the Green Deal, allowing them to challenge such laws in court and undermining the EU’s regulatory autonomy.
The main concerns come from the agricultural sector, which sees the deal as opening the door to unfair competition from Latin American products. The environmental provisions are also being criticised as not offering sufficient protection for the EU.