The European Parliament voted Wednesday to refer the European Union's free trade agreement with Mercosur, a bloc of four South American countries, to the Court of Justice of the European Union. The vote, held in Strasbourg, France, saw lawmakers narrowly approve the referral by a margin of 334 to 324.
The move casts doubt on the future of the accord, which eliminates tariffs on over 90 percent of bilateral trade and was signed the previous Saturday after 25 years of negotiations. The court will now determine whether the deal, backed by most EU nations and the European Commission, is compatible with EU policy.
Proponents of the referral argued that the trade agreement could undermine the EU's environmental and agricultural standards. Concerns have been raised about deforestation in the Amazon rainforest and the potential impact on European farmers.
Those in favor of the deal have emphasized the economic benefits of increased trade and investment between the EU and Mercosur, which includes Brazil, Argentina, Uruguay, and Paraguay. They argue that the agreement would create jobs and boost economic growth on both continents.
The European Commission has defended the agreement, stating that it includes safeguards to protect the environment and ensure that imported products meet EU standards. However, critics remain skeptical, arguing that these safeguards are insufficient.
The referral to the Court of Justice of the European Union could take months or even years to resolve. In the meantime, the future of the EU-Mercosur trade agreement remains uncertain. The court's decision will be binding on the EU and could have significant implications for trade relations between the two regions.
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