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Vienna/Brussels (APA) – The EU Commission aims to push through the trade pact with the South American Mercosur region this year. Before any potential signing by the EU Commission, a council decision by the trade ministers or permanent representatives of the member states is necessary. The Austrian government is relying on a negative decision from the parliament in Vienna in 2019 for its current “no.” The Austrian Industrial Association (IV) is now urging a change of position, citing a new global situation.
No as “a cut into one’s own flesh”
Austria, which is particularly dependent on imports, could become the “deciding factor” in a possible vote at the EU level, says the IV representative for international relations and markets, Igor Sekardi, in an interview with APA. Given the recent decline in exports and the weak to recessionary economic situation, anything other than approval from the Alpine Republic would be “a cut into one’s own flesh.” A vote in Brussels would be conducted by trade ministers and permanent representatives of the member states. A qualified majority is needed there, and then a not absolutely certain okay from the EU Parliament to implement the trade part of the agreement temporarily.
In Austria, a new decision in the Permanent EU Subcommittee in Parliament would be necessary for a yes in Brussels. “Overall, time is pressing,” says Sekardi. Why should the parliamentary parties push for a new vote and a yes? Apart from the party landscape – during the formally binding “no” on September 19, 2019, ten days before the then National Council election, parties not currently represented in Parliament also voted – the global situation has changed massively, according to the IV representative. “New trading partners and new markets must be a focus to maintain local prosperity.” Given the environment, this is “extremely important.”
Reference to massively changed global situation since 2019
He points to three major points that would practically force a “yes”: Disruptions in global trade due to the Corona pandemic, the Russian invasion of Ukraine along with changes in the security situation, and Donald Trump’s second presidency in the USA, which, like Russia’s war, is disrupting export markets. The Russian market no longer exists, and the Trump-led United States, with its tariffs and unpredictable actions, is no longer the partner that Europe has known for decades. “All of this has massively changed the geo- and trade-political situation recently – and Mercosur would be ready to go.”
Among the government and parliamentary parties in Austria, only the liberal NEOS are open to the agreement. The economic wing of the conservative Chancellor’s party ÖVP supports it, but the powerful ÖVP Farmers’ Association is against it. The social democratic SPÖ is critical, while the Greens and the right-wing nationalist FPÖ are opposed. In Europe, among the major countries, France and Poland are critical to rejecting. There are also question marks behind Belgium, the Netherlands, and Hungary.
If there is a “yes” to the trade pact, it could come into force in the second half of 2026, observers believe. A political part is also planned, which must also be approved by the national parliaments. If the political part of the agreement does not go through later, the trade part remains and becomes a fixture. (02.11.2025)