Provisional application of the Mercosur agreement is an important step toward competitiveness and prosperity

The Federation of Austrian Industries (IV) welcomes the provisional application of the trade agreement between the EU and the Mercosur countries. “The provisional application of the agreement with Latin America sends a strong geopolitical signal from Europe and, at the same time, brings significant benefits for Austria’s export-oriented economy. According to studies, around 2,000 additional jobs and 300 million euros in industrial value added could be created. It is an important sign that Europe is now taking action and provisionally implementing this agreement,” explains IV Secretary General Christoph Neumayer.

The economic costs of the delay so far have been significant: According to available studies, the EU has lost an estimated 291 billion euros in economic output between 2021 and 2025 due to the pending implementation of the agreement—equivalent to around 1.6 percent of EU GDP or roughly two years of economic growth.

“Especially in light of the economic challenges in Europe, geopolitical uncertainties, and an erratic U.S. trade policy, new markets and reliable partnerships are essential. Rules-based free trade ensures prosperity, stable supply chains, and competitiveness. The provisional application of the Mercosur Agreement is therefore an important step toward strengthening Europe as a business location,” said Neumayer.