BRUSSELS, January 27. /TASS/. The European Parliament’s decision to refer the free trade agreement with the countries of the South American Common Market (‘Mercosur’) to the EU Court of Justice has seriously weakened trust in Europe as a partner, Politico reported, citing experts.
The bloc "rarely gets second chances in geopolitics," and yet last week the European Parliament chose to miss one, the newspaper noted. "By voting to refer the long-awaited trade agreement with the Mercosur bloc to the Court of Justice of the EU for a legal opinion, a process that may take up to two years, lawmakers dealt a serious blow to Europe’s credibility at a moment when speed and reliability matter more than ever," the publication argued.
According to the publication, the consequences extend far beyond trade. The ‘Mercosur’ countries’ governments spent years negotiating the agreement in good faith, overcoming Europe’s wavering demands and conflicting political signals. The deal was meant to become a foundation for long-term economic, political, and strategic partnership with South America, where European influence has been gradually waning. The European Parliament’s move "reinforces doubts over whether Europe can be relied on" for partners already hedging their bets in an increasingly tense global landscape, Politico concluded.
On January 21, European Parliament members passed a resolution in support of approaching the EU Court of Justice regarding compliance of the free trade agreement with Mercosur with EU norms. The agreement was signed on January 17 in Paraguay and approved by a qualified majority. Austria, Ireland, Poland, and France, along with Hungary, opposed it, not wanting cheap agricultural products from South America to freely enter the European market.
The agreement was primarily supported by Germany and the Nordic countries, which are interested in reducing customs duties on products in the automotive, chemical, and pharmaceutical industries, which are supplied from the EU to South America. After some hesitation, Italy voted in favor of the document.
Mercosur is South America’s largest trade and economic association, founded by Argentina, Brazil, Paraguay, and Uruguay. Their combined territory accounts for over 70% of South America’s land area, with a population of 295 million. The volume of trade between the EU and Mercosur exceeds 112 billion euros, and mutual imports and exports of the associations are balanced.