Poland Challenges the EU-Mercosur Trade Deal at the CJEU: What It Means for Business

Poland has filed a complaint with the Court of Justice of the EU (CJEU) challenging the free trade agreement between the EU and the Mercosur bloc (Argentina, Brazil, Uruguay, Paraguay). The agreement entered into provisional force on 1 May 2026 – despite final ratification not yet being complete. Poland is the first EU member state to formally challenge the deal in court.

What Is Happening

The EU-Mercosur agreement significantly reduces customs duties on industrial and agricultural goods traded between the two blocs. Poland objects on two grounds:

• Procedural: the agreement entered into provisional force without full ratification by the European Parliament and the national parliaments of member states.
• Substantive: agricultural producers from Mercosur countries are not required to meet the same quality and safety standards as European producers, creating an unfair competitive advantage.

In Poland’s view, this threatens both consumer health and the competitiveness of Polish (and European) producers.

What This Means for Your Business

The agreement is already in force – and unless the court rules otherwise, it continues to apply. This means:

• Importers and retail: the possibility of sourcing cheaper products from South America already exists, but the legal fate of the agreement remains uncertain.
• Agribusiness and food industry: prepare for increased price competition from South American suppliers – beef, poultry, soy, sugar, ethanol.
• Manufacturers and exporters: access to the Mercosur market (approximately 270 million consumers) is opening up, but conditions may change before final ratification.
• All companies: there is a legal uncertainty risk – if the CJEU rules that bringing the agreement into force was procedurally unlawful, its application may be suspended.

Recommendations

1. Assess your supply chain: check whether goods covered by the agreement are involved in your operations or those of your counterparties – and what changes if the agreement is annulled or upheld.

2. Review existing contracts: if supplier or buyer agreements reference customs duties or quality standards, check the terms against potential regulatory changes.

3. Monitor CJEU proceedings: a ruling may take months, but interim measures (suspension of the agreement) are theoretically possible earlier.

4. For the agricultural sector: consider engaging in public consultations or industry associations that may influence Poland’s position in the proceedings.