Mercosur proposals before end of the year

Momentum continues to build for an EU-Mercosur trade deal, with detailed proposals from the EU expected by Mercosur before the end of this year.

These negotiations which have been dormant for prolonged periods since their commencement in 1995, recently picked up pace with the election of a new, right of centre, trade-orientated president in Argentina.

Brazilian president Dilma Rousseff and her Argentinian counterpart Mauricio Macri met in Brasilia on Friday last and are now confident that “the EU will submit its proposal as soon as possible”. Sources in Brussels have told the Irish Farmers Journal this week that an EU proposal could be on the table before the end of this year.

So far only France and Ireland have highlighted the concerns of the agricultural sector, with many of the other EU member states with less of a focus on agriculture keen for a deal.

The possibility of a trade deal with the US has generated passionate debate, but Mercosur, perhaps because discussions have been dormant for long periods, appears to be slipping under the radar.

The IFA’s Henry Burns said a European Commission analysis shows that a Mercosur deal would inflict losses of €7.8bn on the agriculture sector and he said the real losses at farm level would be much higher and Minister for Agriculture Simon Coveney and MEPs must come out strongly against a Mercosur deal and in defence of farmers and the agriculture sector. He pointed out the carbon footprint implications of beef produced from destroyed rainforest would be a total contradiction of the EU policy on climate change.

The ICMSA too has expressed its concern, with president John Comer saying: “The possibility of a renewed focus on a Mercosur trade deal should be of major concern to Irish farmers, in particular beef farmers, and it is absolutely essential that any attempt to sell out the Irish beef sector is strongly opposed by the Irish Government.”

Speaking for ICSA, Eddie Punch said the organisation was in Brussels last week and it is clear that there is a drive for a deal. Punch is very concerned at the potential for South American beef to undermine our production and markets. He called on Minister Richard Bruton to robustly fight against access for South American beef to EU markets.

Meat Industry Ireland (MII), the Ibec body representing the meat processing sector in Ireland, has warned that the significant new push at Brussels level to progress negotiations on a trade deal with Mercosur could be very damaging to the Irish meat sector – beef in particular, but also for pigmeat and poultry.

MII director Cormac Healy said: “There is no benefit to the Irish agri-food sector from a trade deal between the EU and Mercosur countries (Brazil, Argentina, Uruguay and Paraguay) and any benefits to the wider economy are questionable.

“However, increased access to the European market for lower-priced South American beef, pigmeat and poultry meat will undermine the Irish livestock and meat sector.”

Healy urged the EU to focus on concluding a trade deal with Japan instead, a market that offered potential for Irish exports.