EU-Mercosur

The Southern Common Market (MERCOSUR) is a regional integration process initially established by Argentina, Brazil, Paraguay and Uruguay, which Venezuela* and Bolivia** have subsequently joined.

The European Parliament has decided to halt (at least for now) the progress of the trade agreement between the EU and Mercosur by referring it to the Court of Justice of the European Union (CJEU) for assessment of its legal basis.

The resolution voted on Wednesday proposed that the agreement with Mercosur be submitted to the Court of Justice for scrutiny.

With 334 votes in favour, 324 against and 11 abstentions, Parliament approved sending the text to the European Court of Justice.

In this scenario, it is more urgent than ever to accelerate European strategic autonomy and reduce its economic and energy dependence, as well as to forge political and commercial alliances with alternative and relevant actors.

According to the CJEU, opinions of this kind take on average between 18 and 24 months to be delivered, although the court ‘has complete control’ over the proceedings and ‘may, where circumstances require, give priority to a request for an opinion in practice’.

For MERCOSUR, this means preferential access to the EU, the world's third largest economy, a market of 450 million people and nearly 15% of global GDP. The European Union will eliminate tariffs on 92% of MERCOSUR exports, worth approximately US$ 61 billion. In addition, it will grant preferential access for another 7.5%, equivalent to US$4.7 billion, thereby benefiting almost all of the bloc's exports to the EU.