Brexit Precedent Emerges in Mercosur Implementation Debate

European lawmakers have formally halted the US trade agreement ratification process, challenging President Trump’s attempt to link tariff policy with his territorial ambitions for Greenland. The suspension represents Brussels’ most concrete material action against what European leaders have described as political blackmail.
Bernd Lange, head of the European Parliament’s trade committee, established clear terms for resuming negotiations, stating that Greenland-related threats must cease entirely before compromise becomes possible. The frozen agreement had been set to eliminate tariffs on many American industrial exports to Europe.
The European Union has preserved its commitment to purchasing $750 billion worth of American energy, with officials confirming this arrangement operates independently from the suspended trade agreement. This strategic separation allows Brussels to maintain energy security cooperation while defending against political coercion.
Diplomatic relations showed visible strain when European Commission President Ursula von der Leyen altered her schedule after addressing parliament. She skipped a Davos detour where she might have encountered Trump, returning instead immediately to Brussels for emergency summit preparations.
Complicating Europe’s trade landscape, parliament narrowly referred the Mercosur deal with Latin American countries to the European Court of Justice. Lange, the Commission, and German Chancellor Merz all condemned the decision. The European Commission technically possesses authority to provisionally implement the Mercosur agreement, similar to its approach with the Brexit trade deal with the UK. However, Lange warned that if the Commission pursued this route, it would plunge the bloc into “huge institutional conflict.” The Thursday summit will prioritize US relations, examining €93 billion in counter-tariffs and anti-coercion mechanisms.