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The EU-Mercosur Free Trade Agreement (FTA) has been under negotiation for more than a quarter of a century. Only last month, the EU Commission reached a political agreement on it with the Mercosur countries and is now pushing for its ratification by 2025. Despite the promise of economic and geopolitical benefits, concerns remain about its environmental impact, labour standards, and political transparency.

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With the deforestation regulation, the EU wants to contribute to minimising global deforestation and forest degradation as well as to reducing greenhouse gas emissions and the loss of biodiversity. The regulation has already been finally adopted and must be applied by 30 December of this year. AK welcomes the new rules and calls for effective application.

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The Austrian Chamber of Labour has always in a number of ways advocated a trade policy in the interests of workers. Fair supply chains, high and enforceable social and environmental standards, the exemption of public services and the rejection of questionable trade agreements such as those between the EU and Mercosur or the EU and Chile - all of these are and have been important issues in recent years. Now the candidates for the EU Parliament can be asked to make an election pledge in favour of a fair EU trade policy. We invite you to take part.

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The Energy Charter Treaty protects investments in fossil fuels such as oil, gas and coal. The agreement is no longer fit for purpose and is not compatible with the EU's climate protection targets. The EU Commission therefore proposed the withdrawal of the EU in July 2023. This requires a decision by the EU member states and the approval of the EU Parliament. On 9 April 2024, the relevant committees of the EU Parliament gave the green light.

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After weeks of tug-of-war, the EU Member States confirmed the EU Supply Chain Act in the Committee of the Permanent Representatives on 15 March 2024. The provisional agreement on the EU ban on products from forced labour was endorsed there on 13 March 2024. The two pieces of legislation still need to be formally adopted by the plenary of the EU Parliament and the Council.

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The 13th Ministerial Conference, which took place from 26 February to 2 March 2024, was unable to lead the World Trade Organisation out of its deadlock. The organisation has been in crisis for some time and has been deemed incapable of acting since 2019. The reasons for this are to be found in long-standing structural weaknesses, which are exacerbated by current geopolitical developments. Socially and environmentally sustainable global trade remains out of reach.

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On 1 February 2024, the Council and the European Parliament reached an agreement on the so-called Single Market Emergency Instrument, which was proposed by the EU Commission in September 2022. The aim of this instrument is to ensure the supply of goods and services as well as the free movement of goods, services and persons for people and businesses even in times of crisis. However, the instrument has weaknesses that are to the detriment of employees.

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On the occasion of the 13th Ministerial Conference of the World Trade Organization (WTO) in Abu Dhabi from 26 to 29 February 2024, the Austrian Federal Chamber of Labour (AK) and the Austrian Trade Union Federation (ÖGB) wish to highlight the urgent need for reforms to achieve a socially just, less crisis-prone and environmentally sustainable global economy.

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Elena Ellmeier

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Judith Vorbach (Brussels office)

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Angela Pfister

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In November 2023, the EU Parliament has adopted its position on the Forced Labour Regulation proposed by the EU Commission, followed by the Council in January 2024. Trilogue negotiations will begin shortly. Together with civil society organisations and trade unions, AK EUROPA points out in this open letter essential elements that the proposed regulation should contain in order to effectively combat forced labour.

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Sarah Bruckner (Brussels office)

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The EU's trade and investment agreement with Chile will be put to the vote in the European Parliament on 29 February. From AK's point of view, the agreement is highly problematic, as it has a negative impact on environmental and social standards, among other. The EU is thus moving a step further away from its goal of using trade policy to contribute to the objectives of the Green Deal.