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
-
Gaza is running out of cash
Under The Radar Palestinians pay the price as black market springs up around banknotes and coins
By Elizabeth Carr-Ellis, The Week UK Published
-
Law firms: Caving to White House pressure
Feature Trump targets major law firms tied to his past investigations
By The Week US Published
-
Venezuelan deportees: Locked up for tattoos?
Feature A former pro soccer player was deported after U.S. authorities claimed his tattoo proved he belonged to a Venezuelan gang
By The Week US Published
-
'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
By Abby Wilson Published
-
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
By Justin Klawans, The Week US Published
-
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
By Harriet Marsden, The Week UK Published
-
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
By Sorcha Bradley, The Week UK Published
-
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
By Rafi Schwartz, The Week US Published
-
Who is the Hat Man? 'Shadow people' and sleep paralysis
In Depth 'Sleep demons' have plagued our dreams throughout the centuries, but the explanation could be medical
By The Week Staff Published
-
Why Assad fell so fast
The Explainer The newly liberated Syria is in an incredibly precarious position, but it's too soon to succumb to defeatist gloom
By The Week UK Published
-
Romania's election rerun
The Explainer Shock result of presidential election has been annulled following allegations of Russian interference
By Sorcha Bradley, The Week UK Published