Hattmannsdorfer demands debate about Mercosur: What does that mean for us?

Hattmannsdorfer demands debate about Mercosur: What does that mean for us?

The National Council under the EU has a new debate about the controversial Mercosur agreement. Minister of Economic Affairs Wolfgang Hattmannsdorfer, on May 19, 2025, emphasized that he was bound by the 2019 Parliament's opinion, even if his personal opinion has changed. This statement called for a veto against the free trade agreement with the Mercosur countries, which includes Brazil, Argentina, Paraguay and Uruguay.

The new negotiation result presented in 2024 has similarities to the result of 2019 in large parts, but also brings some innovations. In this way, the sustainability regulations are strengthened, and there is a ban on export tariffs to certain raw materials by Brazil and Argentina, including nickel, copper and aluminum. In addition, access to the public procurement market of the Mercosur countries is to be increased and a protective clause for domestic producers is to be introduced when imports increasing.

economic advantages and concerns

The Ministry of Economic Affairs emphasizes the economic advantages of the agreement, in particular the lower tariffs and the improved market access. Hattmannsdorfer sees high tariffs as a problem, but recognizes great sales opportunities in the areas of automotive, mechanical engineering and pharmaceutical industry. The minister pointed out that 1,100 companies in Austria are already exporting their products to the Mercosur countries, which secures 32,000 jobs.

Nevertheless, various MPs express concerns about the new negotiation result. Carina Reiter from the ÖVP asked questions about economic aspects, food standards and the risks for agriculture. Pia Maria Wieninger from the SPÖ calls for a fair trade condition and warns the validity of the 2019 decision. Michael Bernhard von den NEOS demands extensive studies that show the added value of the agreement. Elisabeth Götze from the Greens and Susanne Fürst from the FPÖ warn of possible negative effects on agriculture and of pressure on farmers through cheap agricultural imports.

a fund for agriculture and the role of the EU

Hattmannsdorfer also announced the establishment of a fund for agriculture in the amount of 1 billion euros, which is supposed to concentrate on small -scale agriculture. This fund should act as support for farmers and at the same time contribute to mitigating the possible negative consequences of the agreement. The Paris climate agreement is also integrated into the trade agreement, which underlines a clear commitment to sustainable development.

The EU itself sees the opening of world trade as one of its important goals and has established itself as one of the most oriented economies in the world. As on the website of the European Union , the EU negotiates trade agreements in order to provide its company advantageous access to markets and to reduce trade barriers.

Hattmannsdorfer hopes for a comprehensive discussion about the overall package of the Mercosur Agreement before the summer. However, the specific free trade contract has so far failed to do so, which will present the debate about the advantages and disadvantages of the agreement with difficult challenges.

Time will show how the discussion will develop and what specific steps are taken by the Austrian government in order to take the concerns of the MPs seriously and at the same time to maintain economic interests.