European Wine Exports to Mercosur Delayed by Parliament Court Challenge

European wine producers will have to wait longer before they can sell their wines in the South American Mercosur market. Just days after the European wine industry celebrated the signing of the long-awaited EU-Mercosur trade agreement on Saturday, January 17, the European Parliament announced today that it will challenge the deal before the European Court of Justice.

On Wednesday, the full session of the European Parliament voted by a narrow margin to refer the EU-Mercosur agreement to the Court of Justice of the European Union (CJEU). The decision passed with 334 votes in favor, 324 against, and 11 abstentions. Lawmakers cited concerns about whether the agreement complies with EU law. This move effectively suspends the ratification process for the trade pact, although it does not automatically halt its provisional application, which remains under the authority of the European Commission.

A second proposal to seek a legal opinion from the CJEU, this time backed by far-right group Patriots for Europe, was rejected by a wider margin: 225 votes in favor, 402 against, and 13 abstentions.

The European Commission, led by President Ursula von der Leyen, has been a strong supporter of the agreement. Von der Leyen traveled to Paraguay on Sunday to sign the deal and described it as a "historic" moment during her address to Parliament earlier today. After the vote, a spokesperson for the Commission said they regret the Parliament’s decision and will review the situation before making further comments.

Olof Gill, spokesperson for trade at the European Commission, told reporters in Brussels that from their perspective, there is no justification for referring the matter to court. He said that measures have already been taken at the European level to address concerns raised by members of Parliament.

The EU-Mercosur agreement has been under negotiation for more than two decades and aims to create one of the world’s largest free trade areas. The deal would open up new markets for European products such as wine, cheese, and cars while giving Mercosur countries—Argentina, Brazil, Paraguay, and Uruguay—greater access to Europe for their agricultural exports.

However, environmental groups and some lawmakers have raised concerns about deforestation in South America and whether Mercosur countries will meet EU standards on sustainability and labor rights. These issues have fueled opposition within several EU member states and among different political groups in Parliament.

For now, European wine exporters must wait as legal questions are resolved. The outcome will determine when or if they can begin shipping their products to Mercosur countries under reduced tariffs and new trade rules. The Commission has not set a timeline for its next steps while it reviews Parliament’s decision and prepares for possible legal proceedings at Europe’s highest court.