The European Parliament voted 334 to 324 to refer the EU-Mercosur trade deal to the European Court of Justice; a move which could delay ratification of the pact by two years and derail it completely.

A group of MEPs had lodged a legal challenge asking to refer the deal to the court to get a ruling on whether its provisions restrict the EU’s ability to set environmental and consumer health policies.

Speaking from Strasbourg, IFA president Francie Gorman said that the referral was the right decision for this trade deal.

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He added that farm organisations across Europe had lobbied “morning, noon and night” and that it worked.

Supporters of the deal had argued that its ratification is essential to offset business lost to US tariffs and to reduce reliance on China by securing access to critical minerals.

While a decision from the European Court of Justice could take up to two years to be delivered, there is a chance that Wednesday’s vote cold scupper the deal entirely.

Mercosur governments have expressed frustration with the slow progress of negotiations, which began more than 25 years ago.

In December Brazilian president Luiz Inácio Lula da Silva said: “If we don’t do it now, Brazil won’t make any more agreements while I am president.”

The deal was ratified at a vote in the European Commission earlier this month where Ireland, France, Austria, Hungary and Poland voted against the deal.

It was signed at a ceremony in Paraguay, which currently holds the presidency of Mercosur, by European Commission president Ursula von der Leyen on Saturday.

The trade deal would have removed tariffs on 90% of bilateral trade between the EU and Brazil, Argentina, Paraguay and Uruguay.

It had been strongly opposed by European farmers who raised concerns about beef imports from South America, particularly around the production standards there.

It had also been opposed by environmental groups in Europe.