EU-Mercosur agreement: EU chief negotiator Rupert Schlegelmilch optimistic about agreement

2023-09-18 18:16:04

Conversation with MPs regarding opportunities and stumbling blocks

Vienna (PK) Negotiations for an association agreement between the EU and the Mercosur economic alliance, which consists of Argentina, Brazil, Paraguay and Uruguay, have been ongoing since 2000. Ecological and social concerns in particular had delayed the process so far. In September 2019, the EU subcommittee of the Austrian National Council voted once morest the EU-Mercosur agreement, thereby obliging the government to take a position once morest it at the EU level.

The EU’s chief negotiator for the agreement, Rupert Schlegelmilch, came to the House of Representatives today to discuss matters with members of the National Council, particularly from the EU subcommittee. Martin Engelberg, Carmen Jeitler-Cincelli, Maria Theresia Niss, Rudolf Taschner (all ÖVP) as well as Christoph Matznetter (SPÖ), Peter Schmiedlechner (FPÖ) and Clemens Stammler (Greens) discussed the status of negotiations with the South American economic alliance with Schlegelmilch .

Schlegelmilch sees agreement on the right track

The EU-Mercosur agreement is not without controversy in Brussels either, said Rupert Schlegelmilch, introducing his status report on the negotiations. However, from his point of view, some smaller but significant changes would now be made that might lead to a better assessment of the agreement. You know “where the problem is,” says Schlegelmilch. In addition, a lot has changed since 2019, as he noted with regard to a changed geopolitical situation, the pandemic but also worsened climatic conditions. In particular, China’s growing influence on global markets should be countered with increased cooperation between the EU and the democratic Mercosur states. The South American states are also critical of their dependence on China, which is why the door to negotiations “should not be slammed,” explained Schlegelmilch. The economic benefits of the agreement are obvious. We are now “on the right track” with regard to agreement on labor and environmental standards.

MPs raise environmental and social policy concerns

ÖVP mandate Martin Engelberg assessed the rejection of the agreement by the EU subcommittee in 2019 as “not quite that sensible”, but it should be respected. Four years later, he also confirmed that global political conditions had changed and called for the debate to become more objective. Especially with regard to the agricultural implications of the agreement – a “highly emotional” topic. Engelberg’s parliamentary group colleague Maria Theresia Niss was interested in the response letter from the Mercosur states received last Friday to the EU’s proposals and the current mood within Europe towards the agreement.

In their statement, the Mercosur states insisted on more freedom in various policy areas, Schlegelmilch reported. They wanted to ensure that they might respond better to crises in the health sector, for example. They are opposed to sanctions for violations of environmental standards and the effects of the Supply Chain Act. According to Schlegelmilch, it must now be clarified to what extent the agreement needs to be changed. Within Europe, in addition to Austria, there are also critical voices from France and Holland. When Rudolf Taschner (ÖVP) asked how a “win-win situation” might be created, Schlegelmilch pointed to the economic opportunities for both sides of the agreement.

Christoph Matznetter (SPÖ) wanted to know to what extent stakeholders from agriculture had been involved in the negotiation process and how the agreement might prevent anti-EU sentiment from being “fueled” among farmers. Representatives of the agricultural industry were involved, but not convinced, stated Schlegelmilch. The EU has not managed to demonstrate the opportunities that would arise, particularly for exports. The aim here is to provide answers in order to give agriculture more security in an expanded market.

The EU-Mercosur agreement is “out of time,” said Clemens Stammler (Greens), as it runs counter to European efforts to achieve more climate-friendly policies. In addition, the social impact on the population in the Mercosur states and on rural areas in Europe must be taken into account. Peter Schmiedlechner (FPÖ) expressed his group’s clear rejection of the agreement, which represented “crazy” not only in terms of environmental policy. The EU is displacing production in its own countries in order to then have to import products from South America.

Not all environmental standards are adhered to more poorly in South America than in the EU, Schlegelmilch added. For example, fewer pesticides are used in agriculture in the Mercosur countries and the CO2 footprint of some products is also better than if they were produced in the EU. Producing everything in one’s own country is a “nice idea”, but it cannot be realized in a globalized world, says Schlegelmilch. (End) wit


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