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EU Parliament: Parliament Resolution

Do Mercosur Trade Deals Match EU Laws?

Published January 21, 2026

Goal: Ensure EU rules are followed

Community improvement

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The European Parliament is asking the Court of Justice to make sure a trade deal with Mercosur countries follows EU rules and won't weaken important laws.

Trade
Trade

European Parliament Resolution – 21 January 2026

The Parliament asks the Court of Justice to decide whether the EU‑Mercosur partnership agreement (EMPA) and the interim trade agreement (ITA) are compatible with EU treaties.

Background

  • The EU and the four Mercosur members (Argentina, Brazil, Paraguay, Uruguay) negotiated a trade deal that was announced in 2024.
  • In September 2025 the deal was split into two legal texts:
    • EMPA – a full partnership that needs unanimous approval by the Council, Parliament and all 27 Member States before it can take effect.
    • ITA – a trade‑only agreement that only needs a qualified majority in the Council and Parliament’s consent.
  • The split was intended to speed up the process, but it raises concerns that national parliaments lose their right to ratify the ITA.

Key concerns

  1. Legal compatibility – The Parliament worries that the split agreement may violate Article 218 of the TFEU and other EU principles such as conferral, institutional balance and sincere cooperation.
  2. Rebalancing clause – The ITA contains a new clause that lets a party claim compensation if the other side’s measures harm its trade benefits, even if those measures are legal. This could be used to pressure the EU to change climate, food‑safety or pesticide rules.
  3. Precautionary principle – The ITA limits the EU’s ability to apply the precautionary principle on environmental and health risks, which could conflict with EU law and the Charter of Fundamental Rights.
  4. Regulatory differences – The agreement weakens EU controls on food imports from Mercosur, potentially lowering health and environmental standards.

Action requested

The Parliament wants the Court of Justice to:

  • Give an opinion on whether the EMPA and ITA, and the way the Parliament sought that opinion, are compatible with EU treaties.
  • Provide this opinion quickly and inform the Council and the Commission.

The Parliament’s President is instructed to take the necessary steps to obtain the Court’s opinion.

Licensing: The summaries on this page are available under Creative Commons Attribution 4.0 (CC BY 4.0).

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