The EU-Mercosur trade agreement, which has been in negotiation for over two decades, faces potential delays due to a recent European Parliament decision to seek a ruling from the European Court of Justice.
The EU-Mercosur trade agreement has been in negotiation for more than two decades, and its latest delay stems from a narrow vote in the European Parliament, which requests a legal opinion from the European Court of Justice. This setback could postpone the implementation of the treaty by up to 24 months, adversely affecting businesses and consumers on both continents. Expectations surrounding the agreement highlight the potential for mutual gains, making this delay particularly disappointing for stakeholders involved in the negotiations.
The core of the delay is not due to technical issues but rather political roadblocks, primarily driven by three types of protectionism. First, there is the rise of extreme nationalist right-wing factions in Europe that inherently oppose cooperation and multilateralism, thus contributing to hesitations in finalizing the agreement. Second, environmental groups upset over issues related to the Amazon rainforest's protection are advocating for stricter regulations, which complicates negotiations further. Finally, these tensions are compounded by various political agendas within the EU that prioritize national interests over collective agreements.
The implications of this ongoing hesitation in the EU-Mercosur negotiations are significant for international trade relations, especially as both regions have crafted detailed tariff and quota agreements in pursuit of a fair and open trading environment. The longer the agreement is delayed, the more it affects economic collaboration between Europe and South America, potentially harming investments and trade benefits that both parties stand to gain from a finalized treaty.
