The €1bn support package will be available to the agriculture sector exclusively in the event of significant market disturbance as a result of the EU-Mercosur trade deal.
European Commission sources have told the Irish Farmers Journal that it will be used to fund measures available under the Common Market Organisation and that it is the first time that a support package of this nature is made available in the context of a trade agreement.
“Similar to previous support packages (such as that in response to the Russian ban), it will be open to all member states, depending on the extent of the market disturbance.
“As it is impossible to anticipate the extent of any market disturbance or on what sector(s) it will be focused, it is equally impossible to talk about ring-fencing for individual member states.
"Likewise, there will have to be clear evidence of market disturbance before this funding can be mobilised,” sources said.
Safeguards are also available for a very long transition period and if triggered can also act to protect farmers against the risk of significant market disturbance.
"It is also worth pointing out that the agreement provides for general bilateral safeguards that are applicable to all products including agricultural ones and are applicable to products subject to tariffs rate quota (TRQs), which obviously includes beef."
Under the deal, Mercosur countries will have access to export 99,000t of beef to Europe plus 180,000t of poultry.
The agreement will enter into force over a period of five years from 2023 and will come into full effect in 2028.
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The €1bn support package will be available to the agriculture sector exclusively in the event of significant market disturbance as a result of the EU-Mercosur trade deal.
European Commission sources have told the Irish Farmers Journal that it will be used to fund measures available under the Common Market Organisation and that it is the first time that a support package of this nature is made available in the context of a trade agreement.
“Similar to previous support packages (such as that in response to the Russian ban), it will be open to all member states, depending on the extent of the market disturbance.
“As it is impossible to anticipate the extent of any market disturbance or on what sector(s) it will be focused, it is equally impossible to talk about ring-fencing for individual member states.
"Likewise, there will have to be clear evidence of market disturbance before this funding can be mobilised,” sources said.
Safeguards are also available for a very long transition period and if triggered can also act to protect farmers against the risk of significant market disturbance.
"It is also worth pointing out that the agreement provides for general bilateral safeguards that are applicable to all products including agricultural ones and are applicable to products subject to tariffs rate quota (TRQs), which obviously includes beef."
Under the deal, Mercosur countries will have access to export 99,000t of beef to Europe plus 180,000t of poultry.
The agreement will enter into force over a period of five years from 2023 and will come into full effect in 2028.
Read more
Exclusive interview: Hogan defends Mercosur deal
Taoiseach would ‘form alliances’ to block Mercosur
Weekly podcast: Hogan addresses farmer fury on Mercosur and ICSA blockade Kepak
NI farm groups slam Mercosur deal
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