We must not turn a blind eye to the opportunities presented by the Mercosur trade agreement

For the Federation of Austrian Industries (IV), the implementation of the trade agreement between the EU and the Mercosur region is essential to provide the domestic economy with a much-needed boost. The benefits are clear: The agreement provides for the gradual elimination of approximately 91 percent of tariffs on EU exports to Mercosur countries. According to the European Commission, this will mean annual savings of up to four billion euros for EU companies. Studies indicate that European exports to the region could rise by 39 percent. Exports are vital to the Austrian economy: they secure 1.2 million jobs and 25 percent of government revenue.

In difficult times for the Austrian economy, we need economic stimuli that can provide the right impetus without imposing additional costs—in light of this, the short-sightedness of agricultural representatives and the stance of the federal government are incomprehensible.

The deal is a well-negotiated agreement and is now on the table, ready to be finalized. The disruptions originally feared by the Farmers’ Union have now been addressed in further rounds of negotiations and have been safeguarded in multiple ways: through beef quotas, strict import controls, product quality checks, and financial safeguards totaling 6.3 billion euros in the EU’s multiannual financial framework. The Farmers’ Union must also take note of these concessions and change its incomprehensible obstructionist stance.

Precisely because of the experiences of recent years—in particular the pandemic, Russia’s war of aggression, the protectionist policies of the U.S., and Chinese export restrictions—Europe urgently needs to diversify its supply chains and reduce dependencies.