Austria's dispute over the Mercosur trading pact: Pro and Contra in focus!

Austria's dispute over the Mercosur trading pact: Pro and Contra in focus!

In Austria, the upcoming decisions about the controversial EU Mercosur trade pact ensure intensive discussions. The pact, which strives for an economic cooperation between the EU and the Mercosur, consisting of Argentina, Brazil, Paraguay and Uruguay, polarizes the population. While supporters from industry and export industry hope for new economic impulses and better trade conditions, agricultural representatives and environmentalists express considerable concerns.

The resistance to the agreement is clear: the NEOS support the pact, the FPÖ, the Greens and the SPÖ are critical of the view, while the ÖVP is shared. Political unity is missing, and the domestic government is obliged to act against the pact at the European level, based on a parliamentary decision of 2021. This is further complicated by the different interests within the political landscape.

economic perspectives and challenges

The trading pact harbors opportunities, especially for the Austrian economy. In Austria, over 32,000 jobs already secure business relationships with the Mercosur countries. Over 1,400 Austrian companies are active, with more than 260 branches based in Brazil. However, this number has stagnated in recent years. The pact could help intensify these relationships and increase bilateral trade. The EU plans to abolish tariffs to 91 percent of goods that currently have high tariffs, which should benefit small and medium -sized companies (SMEs) in particular.

The duty -free contingents sought by the EU include 180,000 tons of poultry, which can be introduced to the EU over the next five years. The EU currently receives 800,000 tons of poultry annually, of which more than half come from Mercosur countries. In addition, the agreement ensures the rights of 350 geographical information Austrian and European food in Mercosur.

environmental and agricultural concerns

Despite the economic opportunities, there are considerable concerns about possible environmental consequences. Critics fear that the pact will lead to the exploitation of natural resources and rainforests. In the negotiations, the protection of the forests and compliance with climate goals was strongly emphasized. The agreement obliges the participating states to implement the Paris climate protection agreement, whereby suspension is provided for if non -compliance is not.

The agricultural representatives express primarily concerns about the introduction of cheap beef from South America. According to the trade agreement, 99,000 tons of beef are planned for the four Mercosur countries with an inch of 7.5 percent. 55 percent of the quota are reserved for fresh beef and 45 percent for frozen beef. A maximum of 221 grams of additional beef would be possible per EU citizen.

Overall, the European strategy underlines the EU's geopolitical interest in closer cooperation with South America. Since 1999, the EU has been negotiating a comprehensive partnership as part of the EU Mercosur trade agreement, and an agreement was already achieved in 2019. The final text is currently facing legal exams and is to receive the approval of the Council and the European Parliament by July 2025. For the domestic economy, annual savings of around 4 billion euros could be realized through the agreement.

vienna.at reports that the current negotiations and their results could be crucial for future Switzerland and the trade relationships of the EU with Mercosur. Details on the bilateral trading destinations and the expected changes in the regulatory framework were also considered in the discussion, as described on wko.at . Further information on the negotiations and the background of the agreement provides the analysis to Bundesag.de .