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EU Parliament 'Freezes' Mercosur Trade Deal, Referring it to Court

Published January 21, 2026, 13:38

The European Parliament has decided to temporarily 'freeze' the free trade agreement between the European Union and Mercosur (Argentina, Brazil, Paraguay, and Uruguay). The decision was made by a narrow margin (334 in favor, 324 against, 11 abstentions) and refers the agreement to the EU Court for compatibility checks with EU rules and treaties. This process could take up to two years, significantly delaying the implementation of the agreement, which would create a large free trade zone. Cyprus, although having its own agricultural market, will be affected by changes in trade policies and tariffs. The next step is the examination of the agreement by the EU Court, while the European Parliament will await the Court's opinion before deciding on its approval or rejection.