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MEPs to vote on pursuing legal challenge to Mercosur deal

Farmers gather to demonstrate against the free trade agreement between the European Union and the Mercosur countries in Strasbourg yesterday evening
Farmers gather to demonstrate against the free trade agreement between the European Union and the Mercosur countries in Strasbourg yesterday evening

EU politicians will vote this morning on whether to challenge the European Union's contentious free trade agreement with South America in the bloc's top court, a move that could delay the deal by two years and potentially derail it.

The European Union signed its largest-ever trade pact with Mercosur members Argentina, Brazil, Paraguay and Uruguay last weekend.

The agreement now requires approval before it can take effect.

Opponents of the deal led by France - the EU's largest agricultural producer - say the deal will sharply increase imports of cheap beef, sugar and poultry, undercutting domestic farmers who have staged repeated protests.

A group of 144 politicians lodged a legal challenge asking the EU Court of Justice ⁠to rule on whether the agreement can be applied before full ratification by all member states and whether its provisions ⁠restrict the EU's ability to set environmental and consumer health policies.

The court typically takes around two years to deliver such opinions.

If ⁠referred to the ⁠court, the EU could still apply the pact provisionally pending the ruling and parliamentary approval.

However, doing so could prove politically difficult given the likely backlash, and the European Parliament would ⁠retain the power to annul it later.

The vote in parliament is due to take place at 11.30am.

Supporters including Germany and Spain point to US President Donald Trump's disruption of global trade.

They argue the deal is essential to offset business lost to US tariffs and to reduce reliance on China by securing access to critical minerals.

They also warn that Mercosur governments are losing patience ⁠with the EU after years of negotiations.

Ireland was one of five countries, including France, Austria, Hungary and Poland, to vote against the agreement.

Thousands of farmers have protested in each of those countries in recent weeks against the deal.

Together, the EU and Mercosur account for 30% of global GDP.

The treaty will eliminate tariffs on more than 90% of bilateral trade.

This will favour European exports of cars, wine, and cheese, while making it easier for South American beef, poultry, sugar, rice, honey, and soybeans to enter Europe.