On 21 january 2026, the European Parliament voted to refer the agreement to the European Court of Justice (ECJ) for review prior to ratification. This decision could lead to delays of months or even years, as the Court often takes considerable time to issue opinions on complex legal matters. Critics of the agreement argue that it could restrict the EU’s ability to enforce its environmental, health and consumer protection standards.

Farmers’ protests reminiscent of the Middle Ages took place outside the European Parliament in Strasbourg during the vote on Mercosur ratification.

Update on february 27, 2026: After 25 years of negotiations, the EU has provisionally implemented the Mercosur free trade agreement. Ursula von der Leyen announced that the agreement would be partially applied despite the lack of approval from the European Parliament. The agreement covers the South American member states Argentina, Brazil, Paraguay, and Uruguay. Uruguay and Argentina ratified the agreement on thursday, enabling its provisional application.

The goal is to reduce tariffs and trade barriers, facilitating the exchange of goods between the EU and Mercosur for around 720 million people, and to open new markets for European companies.

The decision comes even though not all formal EU procedures have been completed and the European Parliament has not yet fully ratified the agreement. Some member states, especially France and Ireland, criticize the provisional application, as they see disadvantages for European agriculture, such as cheaper imports of beef and sugar.

With provisional application, tariff benefits and trade rules can take effect immediately, while final approval by the Parliament and member states is still pending. The Parliament sent the ratification to the European Court of Justice for a legality check, which could delay the final decision by years in the worst-case scenario.

Supporters emphasize the economic opportunities for industry and trade, while critics warn of social and environmental risks.

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Austria’s Food Retail Sector: No Mercosur Meat on Supermarket Shelves

In Austria, the debate has increasingly shifted to the retail sector. Despite plans to open the EU market to imports from South America — including meat and agricultural products — major supermarket chains such as Hofer, Spar and Lidl have announced that they will not include fresh or chilled meat from Argentina, Brazil or other Mercosur countries in their assortments. Austrian and regional meat remains the standard, retailers stress, while fresh South American meat is “not an issue”.

Regional retailers in Salzburg and other federal states have also confirmed that they will neither list nor sell steaks or beef from South America. This stance is widely interpreted as a response to consumer concerns, farmers’ protests and ongoing agricultural policy uncertainties.

Economic and Political Tensions in Austria

Austria’s position on the Mercosur agreement remains divided. A 2019 resolution of the Austrian National Council mandated the government to oppose the agreement in the EU Council. While business representatives have repeatedly called for a differentiated approach and a generally positive EU stance toward free trade, many agricultural and environmental organisations continue to warn of negative consequences for domestic farming and small-scale agricultural businesses.

Groups such as Tierschutz Austria have sharply criticised the agreement, warning that it could endanger regional agriculture, animal welfare and environmental standards by increasing pressure from cheaper imports.

What About Other Products?

While meat has dominated political and media attention, the Mercosur agreement also regulates import quotas for other agricultural products such as poultry, sugar, rice, honey and soybeans. These market openings are more limited and subject to quotas and tariff rules designed to prevent market distortions within the EU. According to official EU documentation, all imports must continue to comply with strict EU health, hygiene and environmental standards.

For many of these products, this means that although trade may be facilitated in theory, additional legal and administrative barriers are likely to remain, resulting in only a moderate increase in imports.

Outlook: What happens next?

-ECJ review
The most important upcoming event is the review by the European Court of Justice. Its ruling could force changes to the agreement or clear the way for ratification.

-Provisional application
The EU Commission can apply the agreement provisionally before all parliaments have given their approval—this remains a political option.

-National ratifications
A positive opinion from the ECJ will be followed by approval from the EU Parliament and all national parliaments of the member states, as well as the Mercosur parliaments in South America.

Between Scepticism and Geopolitical Strategy

Supporters view the Mercosur agreement as a key geopolitical instrument to strengthen the EU’s resilience to global trade risks and reinforce its position in Latin America. At the same time, concerns over environmental standards, fair competition and the future of European agriculture remain. In countries such as Austria, these debates directly influence both political decision-making and corporate strategies in the food retail sector.

The European Parliament’s decision to subject the agreement to legal scrutiny before ratification has therefore created renewed uncertainty. Whether — and in what form — the agreement, and with it potential Mercosur imports, will ultimately reach the Austrian market remains an open question.

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By Okay Altinisik | 22-1-2026, 11:51:14 (updated on 27-2-2026, 14:59:18)