Ruqayyah Snyder
In 2019, Austria's parliament rejected the EU-Mercosur trade deal, a pact between the European Union and the Mercosur bloc of four South American countries—Brazil, Argentina, Uruguay, and Paraguay. The deal, which was two decades in the making, was touted as one of the world's biggest trade agreements, aiming to remove trade barriers and promote high standards, including a commitment to sustainable forest management and respect for labor rights. However, Austria, along with Ireland and Luxembourg, objected to the deal due to concerns over the environmental policies of Brazil's far-right leader, Jair Bolsonaro, particularly in the context of the Amazon rainforest fires. Nearly all parties in the Austrian parliament's EU subcommittee voted against the draft agreement, citing a lack of binding rules on workers' rights and environmental protection. This decision by Austria effectively blocked the deal, as it required unanimous approval from all 28 EU member states and their parliaments.
| Characteristics | Values |
|---|---|
| Date | 19 September 2019 |
| Reason | Environmental impact |
| EU-Mercosur trade deal status | Rejected |
| EU-Mercosur trade deal ratification status | Requires ratification by all 28 member states |
| Austria's stance on the EU-Mercosur trade deal | Against |
| Austria's stance on the EU-Mercosur trade deal ratification | Vetoed |
| Austria's parliament's stance on the EU-Mercosur trade deal | Rejected |
| Austria's Farmers' Union's stance on the EU-Mercosur trade deal | Against |
| Austria's federation of industry's stance on the EU-Mercosur trade deal | For |
| Political parties in favour of the EU-Mercosur trade deal | Liberal Neos Party |
| Political parties against the EU-Mercosur trade deal | All but the Liberal Neos Party |
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What You'll Learn
Austria's parliament voted against the deal
Austria's parliament voted against the EU-Mercosur trade deal in September 2019, with the government obliged to follow through with the decision at the EU level. The deal was unpopular in farming areas in Austria, and the Austrian Farmers' Union remained a powerful voice of opposition. The country's trade union federation, ÖGB, also campaigned against the deal, arguing that it focused on the interests of industry rather than people.
All but one of Austria's main parties rejected the deal in a parliamentary subcommittee. The motion was passed just a few days before Austria's election, hardening the position of political parties towards the trade deal. The liberal Neos party was alone in rejecting a veto, instead calling for the deal to be renegotiated.
The deal was struck between the EU and the Mercosur bloc of four South American countries: Brazil, Argentina, Uruguay, and Paraguay. Venezuela is a fifth member, but it is currently suspended. The agreement, which would cover 780 million people, aimed to remove trade barriers and promote high standards, with a commitment to sustainable management and conservation of forests and respect for labour rights.
However, the deal was thrown into doubt due to concerns over the environmental impact, particularly regarding the spread of fires in the Amazon rainforest and the Brazilian leader's environmental policies. Ireland, France, and Luxembourg also threatened to block the deal because of these environmental concerns.
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Environmental concerns were raised
Austria's rejection of the deal was influenced by concerns over the environmental impact of the agreement, particularly regarding the Amazon rainforest and deforestation. The spread of fires in the Amazon shocked European leaders, and Brazil's President Jair Bolsonaro was accused by France's Emmanuel Macron of lying about his stance on climate change. Ireland and Luxembourg also threatened to block the deal due to concerns over the far-right Brazilian leader's environmental policies.
The Austrian parliament's decision to block the EU-Mercosur trade deal was hailed by Jörg Leichtfried of the centre-left SPÖ as a "great success for consumers, the environment and animal welfare as well as human rights." He warned that the deal would have had negative consequences for climate protection in South America. Austria's trade union federation, ÖGB, also campaigned against the deal, arguing that it lacked binding rules on environmental protection and focused too heavily on industry interests rather than people.
While Austria's federation of industry supported the deal, asserting that it included a commitment to the Paris Climate Agreement and deforestation prevention in the Amazon, the country's powerful Farmers' Union remained opposed to it. Agriculture Minister Norbert Totschnig emerged as a prominent critic of the free trade agreement, reflecting the unpopularity of the deal in farming areas of Austria.
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The Austrian Farmers' Union opposed the deal
The Austrian Farmers’ Union, considered the most powerful sub-organisation of the ÖVP, has been a staunch opponent of the EU-Mercosur trade deal. The Union's stance against the agreement stems from concerns related to the deal's potential impact on the agricultural sector in Austria.
The Farmers’ Union feared that the agreement, which aimed to remove trade barriers between the EU and Mercosur bloc, would expose Austrian farmers to increased competition from South American agricultural imports. Mercosur includes four South American economies: Brazil, Argentina, Uruguay, and Paraguay, which are all significant agricultural producers and exporters. Lowering trade barriers would likely result in a surge of these countries' agricultural goods entering the EU market, potentially undercutting Austrian farmers and disrupting their domestic market.
Austria's Agriculture Minister Norbert Totschnig, a prominent critic of the free trade agreement, has echoed these concerns. He has likely played a role in shaping the Union's position, given his influence and the alignment of their viewpoints. The Farmers’ Union's opposition to the deal carries significant weight due to its strong influence within the ÖVP, which is currently in a coalition government with Austria's Green Party.
The Union's stance has contributed to the Austrian government's overall rejection of the deal. In September 2019, the Austrian parliament voted against the draft EU-Mercosur free trade agreement, with the government obliged to follow through with this decision at the EU level. This rejection sent a strong signal about Austria's position and hardened the stance of political parties toward the trade deal, especially in farming-focused areas of the country.
Despite pressure from industry groups and some political factions to ratify the agreement, the Austrian Farmers’ Union has remained steadfast in its opposition. Their unwavering stance has likely influenced Chancellor Karl Nehammer's continued resistance to the deal, even in the face of division within his own party on the matter. The Union's influence and unwavering position have played a pivotal role in shaping Austria's ongoing opposition to the EU-Mercosur trade deal.
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The deal was unpopular in farming areas
The EU-Mercosur trade deal was unpopular in farming areas in Austria. The Austrian Farmers’ Union, considered the most powerful sub-organisation of the ÖVP, was heavily opposed to the deal, with Agriculture Minister Norbert Totschnig being the most prominent critic of the free trade agreement. The deal was seen as a threat to Austrian agriculture, and farmers feared that it would lead to increased competition from South American countries, which have lower production costs and larger agricultural areas. In addition, there were concerns about the environmental impact of the deal, especially given the far-right Brazilian leader's environmental policies, which were seen as contributing to the Amazon rainforest fires.
The Austrian government's rejection of the deal was influenced by the popularity of the opposition among farmers. The government, a coalition of Austria's conservative People's Party (ÖVP) and the Green Party, said it did not support the deal in its current form. The Green Party, in particular, may have been concerned about the deal's potential environmental impact and the lack of binding rules on workers' rights and environmental protection.
The deal was also opposed by other groups in Austria, including the trade union federation ÖGB, which campaigned against it, arguing that it focused on the interests of industry rather than people. The centre-left SPÖ also hailed the decision to block the deal as a "great success for consumers, the environment and animal welfare as well as human rights".
However, the Austrian federation of industry supported the deal, warning against "populist scaremongering and free-trade myths" and insisting that the deal included a commitment to the Paris Climate Agreement and the fight against deforestation in the Amazon. There was also pressure from within Chancellor Karl Nehammer's own party, the centre-right ÖVP, to ratify the deal, with some arguing that it would be beneficial for the Austrian economy.
Overall, the EU-Mercosur trade deal was unpopular in farming areas in Austria due to concerns about increased competition, the potential environmental impact, and the lack of protection for workers' rights. This opposition played a significant role in the Austrian government's decision to block the deal, despite pressure from industry and some political groups to move forward with it.
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The EU is Mercosur's biggest trade partner
In 2019, Austria's parliament voted against the EU-Mercosur free trade agreement, which was struck with South American nations Brazil, Argentina, Uruguay, and Paraguay. This decision was influenced by concerns over the environmental impact, particularly regarding the Amazon rainforest, and a lack of binding rules on workers' rights and environmental protection. The EU is already Mercosur's biggest trade partner, accounting for 20.1% of the bloc's trade in goods, including food, drink, farm products, and tobacco. EU exports to Mercosur, on the other hand, make up only 2.3% of the EU's total exports.
The EU-Mercosur trade deal was expected to remove trade barriers and promote high standards, including a commitment to sustainable forest management and respect for labour rights. However, the spread of fires in the Amazon rainforest and the controversial environmental policies of Brazil's far-right leader, Jair Bolsonaro, caused concern among EU countries, with France, Ireland, and Luxembourg also threatening to block the deal.
Austria's decision to block the EU-Mercosur trade agreement was not unanimous within its parliament, with the liberal Neos party rejecting the veto and calling for renegotiation. Additionally, Austria's federation of industry supported the deal, warning against "populist scaremongering and free-trade myths." They argued that the agreement included a commitment to the Paris Climate Agreement and the fight against deforestation in the Amazon.
Despite Austria's initial rejection of the deal, pressure has been mounting on the Austrian government to ratify it. In 2023, industry groups and parts of the chancellor's own party urged him to lift his veto. However, the Austrian Farmers' Union, a powerful sub-organisation, remains opposed to the agreement, with the Agriculture Minister being a prominent critic.
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Frequently asked questions
Austria blocked the EU-Mercosur trade deal due to concerns about the environmental impact of the agreement.
The EU-Mercosur trade deal is an agreement between the European Union and the Mercosur bloc of South American countries, including Brazil, Argentina, Uruguay, and Paraguay. The deal aims to remove trade barriers and promote high standards, including a commitment to sustainable management and conservation of forests and respect for labour rights.
Austria's decision to block the deal was praised by some as a "great success for consumers, the environment and animal welfare as well as human rights." However, it also faced criticism from those who supported the deal, including Austria's federation of industry, which warned against "populist scaremongering and free-trade myths."
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