New Delhi, Jan. 28 -- The European Union's (EU) recent Mercosur trade deal faces an uncertain future after the European parliament quickly referred it to the EU's court of justice for legal opinion. Can India-EU free trade agreement (FTA) avoid a similar fate? Mint unpacks the development and compares the two deals.

Mercosur deal signed?

On 17 January, 2026, the EU signed an interim trade agreement with Mercosur, a trade bloc comprising Argentina, Brazil, Paraguay, Uruguay and Bolivia. The deal, which was agreed after 25 years of negotiations, eliminates tariffs on 90% of the bilateral trade between the two regions and creates a large market involving 750 million people representing 20% of the global gross domestic product (GDP).

But t...