Vienna/Brussels (APA) – The European Commission is determined to advance the trade agreement with the South American Mercosur region within this year. Prior to any potential signing by the Commission, a decision from the council, involving trade ministers or permanent representatives of EU member states, is necessary. The Austrian government is currently citing a negative parliamentary decision from 2019 to support its stance against the agreement. Meanwhile, the Austrian Industrial Association (IV) is advocating for a shift in position due to changes in the global landscape.
Negative Stance Viewed as Self-Destructive
Austria, heavily reliant on imports, may play a crucial role in the EU vote, according to IV’s representative for international relations and markets, Igor Sekardi, in an interview with APA. With recent declines in exports and a weak economic outlook, rejecting the agreement from Austria could be “self-destructive.” Votes in Brussels will be carried out by trade ministers and permanent representatives, requiring a qualified majority, followed by a potentially uncertain approval from the EU Parliament for temporary implementation of the trade aspects of the agreement.
A new decision from Austria’s Permanent EU Subcommittee in Parliament would be essential for a favorable vote in Brussels. “Time is of the essence,” Sekardi states. He poses the question of why parliamentary parties should support a new vote and approval. He points out that the political landscape has shifted since the binding “no” vote on September 19, 2019, which occurred just before the National Council elections, with parties not currently in Parliament also having voted against it. The significant changes in the global situation are a major factor, according to Sekardi. “New trading partners and markets are crucial for sustaining local prosperity,” he emphasizes.
Acknowledgment of Transformative Global Conditions Since 2019
He highlights three critical factors necessitating a “yes” vote: Disruptions in global trade due to the Corona pandemic, the security implications of the Russian invasion of Ukraine, and the changes brought by Donald Trump’s second presidency in the USA, which have impacted export markets. The Russian market has effectively vanished, and the U.S. under Trump, with its tariffs and volatility, no longer resembles the reliable partner Europe has engaged with previously. “All these factors have significantly altered the geopolitical and trade environment recently – and Mercosur is prepared to engage,” he notes.
Among Austrian political parties, only the liberal NEOS support the trade agreement. While the economic faction of the conservative Chancellor’s ÖVP endorses it, the influential ÖVP Farmers’ Association opposes it. The social democratic SPÖ expresses criticism, while the Greens and right-wing nationalist FPÖ are against it. In the broader European context, major countries like France and Poland have voiced concerns, and there are uncertainties surrounding Belgium, the Netherlands, and Hungary as well.
Should the trade pact receive approval, it is projected to come into effect in the latter half of 2026, as per observers. A political component is also proposed, which will require validation from national parliaments. If this political aspect does not pass later, the trade provisions will still remain in effect. (02.11.2025)
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