On Wednesday 21 January 2026, the Fédération des Industries Luxembourgeoises (FEDIL) released an official statement in response to the decision by EU lawmakers to challenge the European Union’s recently signed free trade agreement with South America.
A group of 144 lawmakers put forward a parliamentary motion on Wednesday 21 January to ask the EU Court of Justice to rule on whether the agreement can be applied before full ratification by all member states and whether its provisions restrict the EU's ability to set environmental and consumer health policies.
The European Parliament backed the motion with 334 votes in favour to 324 against, with eleven abstentions.
FEDIL said: “This step is likely to cause an unnecessary delay in implementing an agreement that is fundamental to the European Union’s position on the international stage.”
The federation stated that the decision comes at a time of rising geopolitical tensions, when the need to diversify Europe’s export and import markets has never been more evident. In this context, FEDIL stated it is concerned that political forces with very divergent views have formed a coalition around a position that weakens the European Union’s ability to act strategically, even though the current situation demanded clarity, responsibility and coherence.
It added: “After more than twenty-five years of negotiations, the swift ratification of the EU–Mercosur Agreement would have sent a strong signal of Europe’s ability to conclude ambitious and balanced trade partnerships, while taking into account the legitimate concerns expressed, particularly regarding sustainability as well as social and environmental standards. FEDIL and the relevant parties have taken these concerns seriously, resulting in meaningful progress and substantial safeguards.”
FEDIL emphasised that it is deeply concerned about the economic and geopolitical consequences of a further delay in the entry into force of an agreement of such importance and highlighted several analyses which have shown the significant cost of repeated postponements, both in terms of exports and growth for the European Union. It said: “Any additional delay will only exacerbate these losses, at a time when the European economy urgently needs new growth opportunities.”
FEDIL called on all relevant decision-makers to examine the various options quickly and to work constructively to enable the rapid implementation of the EU–Mercosur Agreement, in the interests of the competitiveness of the European economy, its businesses and employment.
