VDA President Hildegard Müller Regarding Postponement of EU-Mercosur Agreement

    Statement

    VDA President Hildegard Müller Regarding Postponement of EU-Mercosur Agreement

    Berlin, December 18, 2025

    VDA President Hildegard Müller:

    "The postponement of the EU-Mercosur agreement is bad news for Europe as a business location and for Germany as an export nation. At a time when a strong European economy is crucial, the EU is sending a signal of weakness. At the same time, the EU is jeopardizing its credibility as a negotiating partner for trade agreements. The negative consequences of a failure would be severe – for prosperity, growth, jobs, and also for the joint fight against climate change. Furthermore, the diversification of economic relations will be significantly hampered if the agreement cannot finally enter into force.

    Germany is an export nation: roughly 70% of all jobs in our sector depend on exports. This is the central foundation of our prosperity. We expect the European Commission and the member states to finally show more pragmatism in the negotiations. It cannot be that an agreement, negotiated for decades, is now in danger of failing. The automotive industry in the EU is more dependent than ever on improved market access in third countries.

    We must recognize that only a strong and export-oriented industry will be able to master the major challenges of the transformation and thus make a decisive contribution to climate protection. Only with economic strength the EU can play a significant role on the world stage. Therefore, we urgently call on the EU and its member states to hold the vote on the EU-Mercosur agreement as announced in January 2026 and to sign the free trade agreement with the Mercosur countries. The world is not waiting for Europe especially with regard to this and other necessary agreements in the future, a change of mindset is needed in Europe."

    Press Office

    Benedikt Herzog-Wolbeck

    Spokesperson with focus on economic policy & trade