Hattmannsdorfer in the crossfire: criticism of the controversial Mercosur deal!

Hattmannsdorfer in the crossfire: criticism of the controversial Mercosur deal!

Krone AT, Österreich - Minister of Economics Wolfgang Hattmannsdorfer has spoken out for the controversial Mercosur deal, which leads to internal criticism within the ÖVP. This position contradicts the official party line and a National Council decision that is directed against the pact. The Bauernbund in particular turned against Hattmannsdorfer. His party colleague, Minister Norbert Tettschnig, also calls for a mandatory designation of origin for food in gastronomy, which appeals to the concerns about the sustainability of food production.

The Mercosur deal, which is a free trade agreement between the EU and the Mercosur countries of Argentina, Brazil, Paraguay and Uruguay, has been planning for over 20 years. The central negotiations were completed in December 2024, and the agreement will come into force from 2026. The aim of this agreement is to reduce tariffs and trade barriers as well as the promotion of bilateral trade and investments. Against this background, the clash between Hattmannsdorfer and the intra -party opposition is important.

regulations and environmental standards

From the end of 2025, only deforestation-free products may get to the EU market. This affects essential products such as soybeans, beef, palm oil, wood, cocoa, coffee and rubber. The regulation also applies to imports in the context of the EU Mercosury Partnership Agreement. A system for geographical information is introduced to ensure that products have been manufactured with traditional knowledge and techniques. Examples of such geographical information are Tyrolean bacon from Austria and Prosciutto di Parma from Italy.

The initiatives to regulate product quality and their origin are in the context of concerns about the possible environmental impact of the agreement. Critics warn of the dangers that could bring an increased beef export from Mercosur countries for European agriculture and the environment. In the meantime, Hattmannsdorfer emphasizes the potential that can arise from a stronger integration of the markets, also with regard to the diversification of the supply chains.

political reactions and trade conflicts

Currently in the EU is also discussed in the reactions to the US tariffs on steel and aluminum imports. Germany's Minister of Economic Affairs Robert Habeck has already announced measures to counter these US tariffs. A list of possible countermeasures that include tariffs for products such as jeans, whiskey and motorcycles is being prepared. In this complex trade environment, entrepreneur Elon Musk advocates creating a free trade zone between the USA and Europe to avoid the dangers of a trade war.

The trade conflict has a volume of $ 26 billion and the effects on international trade relationships are enormous. Against this background, the Mercosur deal could be one of the key factors to strengthen European companies and farmers on the global market, but at the same time faces significant challenges.