The European Parliament has voted by 334 votes to 324 to refer the EU-Mercosur trade deal to the Court of Justice of the European Union, a move which could delay ratification of the pact by two years and could 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.

A spokesperson for the European Parliament said: “The legal basis of the EU-Mercosur partnership agreement (EMPA) and the interim trade agreement will now be reviewed by the ECJ.

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"The European Parliament will continue its examination of the texts, while awaiting the opinion of the EU court. Only then, parliament will be able to vote to grant consent (or not) to the agreement.”

Fianna Fáil MEP Billy Kelleher has said the right result was obtained at the vote on Wednesday.

“Today, I voted with a majority of the parliament to refer the deal to the court. It’s clear that there are issues, on many fronts, with regards to this trade deal.

“The issues of sub-optimal beef entering the European Union; supporting possible deforestation of the Amazon, and the potential removal from the land of indigenous communities mean that the deal is not acceptable."

More to follow