LAST UPDATE | 21 Jan

THE EU-MERCOSUR TRADE deal has been stalled after MEPs voted to refer the agreement to the European courts.

In a close ballot, MEPs in Strasbourg voted 334 to 324 in favour of asking the Court of Justice of the European Union (CJEU) to determine whether the deal is compatible with the bloc’s policy.

EU chief Ursula von der Leyen had previously touted the deal as critical given tensions with the White House, saying it would provide the world’s largest free trade area and improve relations with South American countries including Brazil, Argentina and Paraguay.

It’s the latest setback for a deal that was floated a quarter of a century ago, with the EU executive has said it “regrets” in its initial reaction to the defeat.

“According to our analysis, the questions raised in the motion by the parliament are not justified because the commission has already addressed those questions and issues in a very detailed way,” European Commission trade spokesman Olof Gill told reporters in Brussels.

Opposition from environmentalists and farmers

The deal had been backed by most EU nations and the European Commission, but opposed by Ireland, France, Poland and farmer groups.

But it faced opposition from a combination of left MEPs and rural-based members.

Sinn Féin’s Lynn Boylan – who opposed the deal on environmental grounds – hailed the vote as meaning the agreement may be delayed for “at least 18 months”.

Dublin MEP Boylan and Ireland South MEP Kathleen Funchion were signatories on the proposal to refer the deal to the ECJ.

“Mercosur is a rotten trade deal that really gets worse the more you read about it.

This is a deal to let the EU sell German cars into South America, but they’re throwing climate protections, food safety standards, human rights and farmers all under the bus to do it.

Independent MEP Luke ‘Ming’ Flanagan and and Independent Ireland’s Ciaran Mullooly were among those who also campaigned for a deferral.

We won. 334 to 324 https://t.co/Mc2VSLye3s pic.twitter.com/oiwIk8UuHp

— Luke 'Ming' Flanagan (@lukeming) January 21, 2026

Fianna Fáil MEP Billy Kelleher has said the right result was obtained today after the European Parliament voted to refer the Mercosur Trade Deal to the courts.

“The issues of sub-optimal beef entering the European Union; supporting possible deforestation of the Amazon, and the potential removal from the land of indigenous communities mean that the deal is not acceptable,” the Ireland South MEP said.

He added that the European Commission had attempted to “plough ahead” and ignore the issues raised by opponents.

“We can and should have been able to sign a Mercosur deal that found solutions to these problems, especially the principle of mirroring of standards whereby farmers in Mercosur countries should match the standards EU farmers have to adhere to.”

‘Round one to farmers’

Speaking from Strasbourg, Irish Farmers’ Association (IFA) President Francie Gorman hailed the vote, calling it a “great result for the European umbrella farm group” across the bloc.

“The referral was the right decision for this trade deal and future trade deals. Farm organisations across Europe, as part of COPA, lobbied morning noon and night and it worked,” he said.

Gorman paid credit to the thousands of farmers and their supporters who turned out in Athlone recently to voice their opposition to the agreement with South America.

The party that organised that protest – Independent Ireland – welcomed the Mercosur deferral as it said it represents “round one to the farmers” and proves that sustained pressure can force change at European level.

Party leader Michael Collins said the work was not done and that the EU’s trade deal would need to be “stopped for good” by opponents.

“Farmers were told this deal was inevitable — today shows that was never true. We need to keep the pressure on and keep going until Mercosur is stopped for good,” Collins said.

With reporting by AFP