"A win for Europe"

Now fixed: EU agrees on Mercosur agreement

"EU-Mercosur reflects our values and our commitment to climate protection," said EU Commission President Ursula von der Leyen.

(Bild: AFP, Kronen Zeitung, krone.at-Grafik)

Despite reservations from countries such as France, Italy and Poland, the EU Commission has successfully concluded negotiations on a comprehensive free trade zone with the South American alliance Mercosur. 

A "political agreement in principle" has been reached. This was announced by EU Commission President Ursula von der Leyen after a final meeting with top representatives of the Mercosur states Brazil, Argentina, Uruguay and Paraguay in Uruguay's capital Montevideo on Friday afternoon.

"Reflects commitment to climate protection"
 The agreement is "a win for Europe", with "30,000 small European companies already exporting", she writes on X. "Many more will follow". "EU-Mercosur reflects our values and our commitment to climate protection," said von der Leyen.

A political agreement in principle had already been reached on the establishment of the free trade zones in summer 2019. However, the governments of several countries repeatedly questioned the agreement.

Criticism also from Austria
Within the EU, France and Poland, among others, have recently expressed their opposition, and Austria's minister is also obliged to reject the agreement, at least for the time being, due to a 2019 resolution. In addition to the ÖVP farmers' association, the SPÖ, FPÖ, Greens and the Chamber of Agriculture have recently expressed criticism, as have environmental NGOs.

Fakten

Was ist Mercosur?

The Mercosur Treaty forms the basis for the free trade agreement between the EU and the South American countries of Mercosur (Argentina, Brazil, Paraguay, Uruguay and Venezuela, with Bolivia as a new member). It comprises several key points that regulate trade relations and economic cooperation, including, for example

• Free trade: The EU will grant Mercosur countries access to its market for agricultural products, while at the same time allowing them to import industrial goods from the EU more easily.

• Tariff reductions: The agreement aims to reduce or eliminate tariffs on a wide range of goods. This applies to both industrial and agricultural products.

• Access to markets: The agreement facilitates access to the markets of both regions, both for products and services.

• The agreement includes trade arrangements for agricultural products, with some agricultural products such as meat, sugar and ethanol being heavily affected.

• Economic cooperation: The aim is to increase cooperation in areas such as research, technology and innovation.

• Sustainability and social standards: There are agreements that oblige Mercosur states to observe internationally recognized labour and environmental protection standards.

Warum die Proteste?

Kritikpunkte an Mercosur

• Environmental protection and sustainability: Critics fear that the agreement could create incentives for the destruction of natural resources, as it favors agriculture and the export of products such as meat and soy, which are associated with environmental destruction.

• Social and labor standards: In many Mercosur countries, labor rights and social standards are less strict than in the EU. There are concerns that the agreement could endanger labor rights by exploiting cheaper labor and worsening working conditions.

• Economic imbalances: Critics argue that the agreement will not necessarily benefit the Mercosur countries. It could lead to European companies dominating the markets in South America and local companies in the Mercosur countries being squeezed out.

It has become increasingly clear in recent days that this agreement will be reached despite protests.