Austria Urged to Reconsider Opposition to EU–Mercosur Trade Deal, Says Central Bank Chief

Austria should reassess its long-standing opposition to the European Union’s trade agreement with the Mercosur bloc, Central Bank Governor Martin Kocher said in remarks published on Monday. Speaking to Austrian news agency APA, Kocher argued that the pact represents an important economic opportunity, stressing that “as a small, export-oriented country, we simply cannot afford to forgo such an opportunity.”

Austria’s parliament passed a resolution in 2019 rejecting the proposed agreement, and successive governments have since reiterated their commitment to that position. The EU reached a political agreement with Mercosur — comprising Argentina, Brazil, Paraguay and Uruguay — in December last year, creating what would be the bloc’s largest trade accord after more than two decades of negotiations. However, the deal still faces resistance from several EU members, including Italy, France, Poland and Hungary, and requires approval from a qualified majority of states representing 65% of the EU population.

Kocher said the circumstances surrounding the debate have evolved significantly since Austria’s rejection six years ago, noting that the current version of the agreement includes stronger safeguards for farmers and other sensitive sectors. With global trade competition intensifying, he suggested that Austria should revisit its stance to ensure it does not miss out on strategic economic advantages.

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