Regrettable Decision: Commission Condemns Mercosur Court Referral

Brussels has formally suspended the ratification of its trade agreement with the United States following President Trump’s linkage of tariff threats with his Greenland ambitions. European lawmakers have characterized this approach as blackmail, prompting the parliament’s most significant material response to the escalating crisis.
According to Bernd Lange, chairman of the European Parliament’s trade committee, no possibility for compromise exists while Greenland-related threats remain active. The frozen trade deal had been designed to provide American industrial exporters with zero-tariff access to European markets across multiple product categories.
The European Union has maintained its $750 billion energy purchase commitment, which officials confirm operates separately from the suspended trade agreement. This strategic distinction allows Brussels to preserve essential energy cooperation while defending political autonomy.
Diplomatic tensions escalated when European Commission President Ursula von der Leyen changed her post-parliamentary plans. She bypassed a Davos stop where Trump was attending, returning instead directly to Brussels for emergency summit preparations.
In a development the European Commission described as “regrettable,” parliament voted by a narrow 10-vote margin to refer the Mercosur trade deal with Latin American countries to the European Court of Justice. The decision drew condemnation from Lange and German Chancellor Friedrich Merz, with German car manufacturers also denouncing the move. While the Commission possesses authority to provisionally implement the agreement similar to its Brexit approach, Lange warned such action would trigger “huge institutional conflict.” The Thursday summit will primarily focus on US relations, examining €93 billion in counter-tariffs and anti-coercion mechanisms.