Austria blocks EU trade deal with South America
MPs deal blow to agreement 20 years in the making by demanding a government veto

MPs in Austria have dealt a severe blow to the EU’s landmark trade agreement with South America, by demanding a veto on any deal.
The South American trade bloc of Mercosur includes four of the region’s biggest economies - Brazil, Argentina, Uruguay and Paraguay. A fifth member, Venezuela, is currently suspended due to the economic turmoil gripping the country.
The EU is already the bloc’s biggest trade partner, accounting last year for 20.1% of its trade in goods such as food, drink, farm products and tobacco.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The draft agreement, which took 20 years to complete and has been described by the EU it as its biggest so far, would cover 780 million people, and “aims to remove trade barriers and promote high standards, with a commitment to sustainable management and conservation of forests and respect for labour rights”, says the BBC.
Yet despite the enormous effort that has already gone into the deal, its ratification by every EU government is far from certain.
DW reports the trade agreement, reached last June after almost a decade of negotiations, “was already in doubt due to concerns over fires in the Amazon rainforest and the politics of Brazilian President Jair Bolsonaro”.
France and Ireland have warned they will reject the deal if Brazil does not do more to curb fires in the Amazon rainforest.
Now, all but one of Austria’s main parties have rejected the deal in a parliamentary sub-committee, with Jorg Leichtfried of the centre-left SPO hailing the vote as a “great success for consumers, the environment and animal welfare as well as human rights”, while warning that it would have been bad for climate protection and labour rights in South America.
The Guardian says “concerns about adverse effects on the European product standards and farming sector also played a part in the debate in the Austrian parliament”.
Importers of EU goods in the Mercosur zone currently have to pay tariffs of 35% on cars, 14-20% on machinery and 27% on wine, which would be gradually phased out if a trade deal came to pass.
However, DW says the cross-party agreement to vote against the trade deal “may also be a way of politicians seeking support from voters, as elections are coming up”.
According to the Krone Zeitung, 78% of Austrians wanted the pact to be thrown out.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Today's political cartoons - May 11, 2025
Cartoons Sunday's cartoons - shark-infested waters, Mother's Day, and more
-
5 fundamentally funny cartoons about the US Constitution
Cartoons Artists take on Sharpie edits, wear and tear, and more
-
In search of paradise in Thailand's western isles
The Week Recommends 'Unspoiled spots' remain, providing a fascinating insight into the past
-
What happens if tensions between India and Pakistan boil over?
TODAY'S BIG QUESTION As the two nuclear-armed neighbors rattle their sabers in the wake of a terrorist attack on the contested Kashmir region, experts worry that the worst might be yet to come
-
Why Russia removed the Taliban's terrorist designation
The Explainer Russia had designated the Taliban as a terrorist group over 20 years ago
-
Inside the Israel-Turkey geopolitical dance across Syria
THE EXPLAINER As Syria struggles in the wake of the Assad regime's collapse, its neighbors are carefully coordinating to avoid potential military confrontations
-
'Like a sound from hell': Serbia and sonic weapons
The Explainer Half a million people sign petition alleging Serbian police used an illegal 'sound cannon' to disrupt anti-government protests
-
The arrest of the Philippines' former president leaves the country's drug war in disarray
In the Spotlight Rodrigo Duterte was arrested by the ICC earlier this month
-
An ingredient in Coca-Cola may be funding Sudan's war
Under the Radar Global trade in gum arabic centres on the African nation – and proceeds bankroll conflict between the army and paramilitary rebels
-
Ukrainian election: who could replace Zelenskyy?
The Explainer Donald Trump's 'dictator' jibe raises pressure on Ukraine to the polls while the country is under martial law
-
Why Serbian protesters set off smoke bombs in parliament
THE EXPLAINER Ongoing anti-corruption protests erupted into full view this week as Serbian protesters threw the country's legislature into chaos