Despite persistent concerns, the European Commission concluded negotiations with the South American alliance Mercosur on Friday (see video above). The Austrian National Council has been critical since 2019, but the domestic industry is in favor of it.
As reported, European Commission President Ursula von der Leyen announced on Friday afternoon that the controversial trade deal had been successfully concluded. This includes granting the EU access to their markets for agricultural products to the states of Argentina, Brazil, Uruguay and Paraguay. These in turn can more easily import industrial goods from the EU. Tariffs on many goods should be reduced or completely abolished. Access to services will also be made easier.
In addition, more cooperation is being sought. The negotiations lasted almost a quarter of a century. The Austrian National Council already vetoed this in 2019. The text of the contract is currently not publicly available. This must be waited for before a “serious assessment” can be carried out, said Agriculture Minister Norbert Totschnig (ÖVP).
Here you can see a graph of trading over the previous year.
SPÖ, FPÖ, Greens critical
Recently, the ÖVP Farmers’ Association, the SPÖ, FPÖ and the Greens, among others, were critical. Environmental NGOs, the Chamber of Agriculture, the Chamber of Labor and the trade union are also against it. Critics fear, for example, that European farmers will be forced into a brutal price war in the future and that the destruction of the rainforest in South America will be fueled.
The NEOS, the Chamber of Commerce and the Industry Association are in favor of the agreement. Wifo director Gabriel Felbermayr spoke of “great economic benefits” on Friday evening. Over the past five years, solutions have been negotiated to address the concerns of European farmers, for example in the areas of beef or eggs.
Felbermayr: “A compromise”
“The committee has done everything possible. Every agreement is a compromise.” Trade politicians also see Mercosur as a message to future US President Donald Trump in competition with China. It says Trump needs to be shown that functioning free trade agreements are better for the domestic economy in the long run than closing off markets with new tariffs and other trade barriers.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
