The future of the trade deal agreed in July 2019 between the EU and the Mercosur trading bloc, made up of the South American countries Brazil, Argentina, Paraguay and Uruguay, has been cast into doubt. The trade deal, which was due to come into force in 2023, granted the South American countries access for up to 150,000t of beef into the EU at either a reduced or zero rate quota. It had been widely criticised by EU farmers. The IFA had calculated that the trade deal could cost Irish farmers from €500m to €750m.
The future of the trade deal agreed in July 2019 between the EU and the Mercosur trading bloc, made up of the South American countries Brazil, Argentina, Paraguay and Uruguay, has been cast into doubt.
The trade deal, which was due to come into force in 2023, granted the South American countries access for up to 150,000t of beef into the EU at either a reduced or zero rate quota. It had been widely criticised by EU farmers. The IFA had calculated that the trade deal could cost Irish farmers from €500m to €750m.
Participation
But a decision taken by Argentina’s president, Alberto Fernandez, to suspend his country’s future participation in Mercosur threatens the collapse of the unified trading bloc and questions whether or not the EU trade deal struck last year can be ratified, even though the foreign minister said it was only in relation to future deals.
The action taken by Argentina is in response to the decision by Brazil, Uruguay and Paraguay to pursue free-trade agreements with countries that would compete directly with Argentina.
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