The vote to seek a legal opinion on the agreement between the European Union and the Mercosur countries has been described by industry representatives as a “devastating signal”, “a punch in the gut” and a “serious setback” for Germany’s foreign trade and for Europe as a logistics hub.
VDA: “Europe is weakening itself”
German Association of the Automotive Industry (VDA) President Hildegard Müller called the European Parliament’s decision a “devastating sign”. In a statement, the association warned that judicial review could delay the agreement’s entry into force “significantly, possibly even by years”.
According to Müller, such delays risk exhausting the patience of the Mercosur states and could ultimately jeopardise the entire agreement. The VDA stressed that provisional application of the deal by the European Commission remains possible and is urgently needed.
“With the European Parliament’s decision, Europe is weakening itself at a moment when geopolitical resilience and reliable international partnerships are more urgently needed than ever,” Müller said.
DIHK: “A punch in the gut”
Peter Adrian, President of the Association of German Chambers of Industry and Commerce (DIHK), also reacted sharply.
“For German business, today’s decision by the European Parliament is a punch in the gut,” Adrian said.
He warned that, at a time of structural economic weakness in Germany, the delay would mean missed market opportunities and reduced access to raw materials in Latin America. According to Adrian, the lack of a clear signal on market access and diversification is particularly problematic in the current geopolitical environment.
“At best, today’s decision means the agreement will be delayed by many months, after 25 years of negotiations,” he added.
BGA: “An absolute disaster”
Dirk Jandura, President of the German Wholesale, Foreign Trade and Services Association (BGA), went further, describing the decision as an “absolute disaster”.
In his view, Europe is once again presenting itself as incapable of decisive action. Jandura placed the decision in a broader political context, stating:
“The members who voted against the agreement have done Trump and Putin the biggest possible favour. Such ignorance is barely tolerable given the dramatic global situation.”
Like other business representatives, Jandura called on the European Commission to apply the agreement provisionally in order to limit further economic damage.
Logistics sector warns of a “serious setback”
The logistics industry has also expressed concern. Frank Huster, Chief Executive Officer of the German Freight Forwarding and Logistics Association (DSLV), described the decision as a “serious setback – including for the logistics sector”.
“At a time of ongoing geopolitical tensions, frozen trade relations with Russia and disrupted export flows to the US, Mercosur would offer new opportunities to strengthen Europe,” Huster said.
Business calls for speed and decisiveness
The dispute over the EU–Mercosur agreement is increasingly seen by German business organisations as a test of Europe’s credibility in trade policy. From their perspective, the European Parliament’s move sends a negative signal for future multilateral trade agreements.
The message from German industry is clear: the European Commission should act swiftly, make use of the option of provisional application, and align trade policy more closely with economic and geopolitical realities.
