The plenary session of the European Parliament has adopted a resolution to ask the Court of Justice of the European Union for a legal opinion on the compatibility of the EU-Mercosur agreement with the Treaties.

The proposal passed by a narrow majority, reflecting the strong political division that exists around the agreement.

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What does the intervention of the Court of Justice entail?

With this decision, the ratification process is suspended until the Court issues its opinion, a procedure that may take more than a year. However, the court may give it priority if the situation so requires.

If the Court concludes that any part of the agreement is not compatible with the Treaties, changes to its structure or content may be necessary before proceeding with ratification.

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Can the agreement be implemented without waiting for the opinion?

This referral to the CJEU is not a final rejection of the agreement, but a formal request for a legal opinion prior to a formal ratification by the European Parliament.

The European Commission could provisionally activate the commercial parts of the agreement without waiting for the court’s ruling or parliamentary ratification, relying on legal mechanisms similar to those used in previous agreements (e.g. with Chile).

However, although legally it is possible for the Commission to propose to implement the agreement on a transitional basis, politically it is highly controversial.