Free trade agreement: Kocher demands rethinking for Austria's economy!

Free trade agreement: Kocher demands rethinking for Austria's economy!

Montevideo, Uruguay - In the free trade negotiations between the European Union and the Mercosur countries of Argentina, Brazil, Paraguay and Uruguay, a directional result has now arisen after 25 years of discussed years. The EU Commission has signed a central agreement that has the potential to create the largest free trade zone in the world and to combine over 700 million inhabitants. EU Commission President Ursula von der Leyen described the deal as "historical milestone" and as crucial in times of global isolation and fragmentation, such as reported.

Despite the opportunities that could offer the agreement, a lively part of the political landscape in Austria in the past was against the pact. Agriculture and environmentalists in particular expressed massive concerns. But now there is a rethink, especially by the Austrian Minister of Commerce Martin Kocher. In his blog, he calls for a reassessment of the Austrian position on the Mercosur agreement. He notes that the current geopolitical conditions are worth considering in order not to endanger Germany's status as a strong export country. Kocher warns that a general rejection of the agreement for Austria could have devastating economic consequences. The pact could give the domestic industry new impulses, so The press .

arguments for the conclusion of the agreement

Kocher speaks of the challenges that the agreement would be rejected, so that countries like Brazil could deepen their trade relationships with other, not as environmentally -oriented trading partners as China. Special commitments from the agreed contract concern environmental and climate protection, which now contain even greater enforcement mechanisms. The minister emphasizes that it is unrealistic to believe that the Amazona dignity is better protected by rejection of the agreement.

The negative effects on agriculture are also not ignored. Kocher explains that imports from the Mercosur countries are carried out via defined quotas, such as the approval of 1.6 percent of European beef consumption, which are still heavily regulated. In the case of market distortions, compensation payments for affected farmers are proposed. Coher draws in parallels to the experience with the CETA agreement with Canada and is convinced that the Mercosur Agreement can ultimately strengthen the domestic agricultural sector. According to Kocher, the Austrian position should be rethought in terms of the Mercosur Agreement. The National Council had to vote again to bring about a decision in the sense of the legal clarity and the economic future of Austria.