In . – 07/15/2023 07:00 (act. 07/15/2023 07:00)
The Mercosur agreement may jeopardize climate goals. ©APA/ROBERT JAEGER (symbol image)
In the past, the planned free trade agreement between the EU and the South American countries of Mercosur has been heavily criticized by several scientists.
Now researchers at the University of Vienna and the University of Natural Resources and Life Sciences are following suit. The deal contradicts the EU’s goals for sustainable economic restructuring and undermines environmental and social standards, they wrote in a broadcast on “Diskurs. Das Wissenschaftsnetz”.
Viennese researchers on the Mercosur agreement
The current draft agreement, which would create the world’s largest free trade area, by no means meets the requirements of a modern trade policy, the researchers write, citing previous studies. This puts “world market expansion above ecological risks and human rights concerns”.
For example, imports of soy and meat into the EU would increase, for whose production large areas of rainforest are repeatedly cleared in the Amazon region. Furthermore, the agreement undermines Europe’s sustainable food supply, as environmentally harmful production is simply relocated to other countries. The scientists assessed the rules contained in the project as inadequate for monitoring compliance with ecological standards and the possible sanctions in case of violation.
“The political rules for international trade must be revised and based on high environmental and social standards”, demand the researchers. “The EU would have a chance to move forward with a fair and green deal and thus put other trading partners like China or the US under pressure.” Scientists recommend that the government maintain its “no” to the agreement until the objections are resolved.
Mercosur Agreement: proponents see positive window of opportunity for conclusion
Supporters of the deal currently see a positive window of opportunity for completion. Spain is currently the EU Council Presidency and in favor. Recently, for example, the business delegate in Brazil, Günther Sucher, defended a conclusion. He warned the APA about the negative effects of non-implementation of the free trade agreement. Asked if he feared a market loss if the EU pulled out of the deal, the trade representative said: “I certainly see it that way. Such a scenario is imminent if the deal does not happen. China is involved in both imports and is already a one of Brazil’s most important trading partners when it comes to exports.”
The agreement between the EU and Mercosur countries Brazil, Argentina, Uruguay and Paraguay had been under negotiation for 20 years. The agreement has been suspended since the end of negotiations. It still needs to be ratified by all member states; Austria, for example, rejected this in 2019. The European Commission hopes that the EU-Latin America Summit on 17-18 July in Brussels will give new impetus to negotiations on the agreement, which it intends to conclude before the end of this year.