One of the early comments from new IFA President Joe Healy and Livestock Chair Angus Woods have been condemnation of Mercosur talks. It is right that this is foremost in their minds as they settle into their new jobs because despite assurances from the Agriculture Commissioner Phil Hogan to the Irish Farmers Journal that any deal with Mercosur would have to be a balanced deal, the threat remains real.

This is reflected in comments made by Joao Pacheco, who was the senior DG Agri negotiator in the previous round of negotiations in 2004, reported in Brussels based trade publication Agra Facts. He said that a deal with the highly competitive and efficient Mercosur countries would severely damage the EU livestock sector, particularly beef producers and wipe out sugar. He also reflected that a Mercosur deal couldn’t come at a worse time for EU farmers given the current market difficulties. When the person that headed the discussions last time round takes this view, Irish and EU beef producers and industries are right to be concerned.

Opportunity for dairy

On a more positive note he did see opportunity for the dairy industry in trading high quality cheeses with Mercosur countries. This is driven by the fact of expanding capacity in the EU, and also the fact that the dairy industry in Mercosur countries isn’t as developed. Brazil is in fact a net importer of dairy products.

These are critical days in the formulation of the EU offer to Mercosur which will be tabled in the second week of May. Member states have had the indication of the Commissions thinking a couple of weeks now and the Trade committees have been meeting and responding. The 78,000 tonnes was the opening indicator, though Commissioner Hogan did tell the Irish Farmers Journal that agriculture's voice is being heard. It is no time to have a caretaker Agriculture Minister, despite the quality of the senior officials in the Department of Agriculture who will deputise.

Trade discussions

Meanwhile, after being the high profile trade discussions for much of the past three years, the next round of Trans-Atlantic Trade and Investment Partnership Talks will be held in New York starting on Monday 25 April. EU Trade Commissioner Cecilia Malmström will meet with US Trade Representative Michael Froman at a trade fair in Germany, with TTIP expected to feature strongly. US negotiators will be buoyed by the offer that is being contemplated by the EU for beef and have put down a market recently that they are expecting a meaningful offer on Agriculture - otherwise any deal would be greatly diminished.

TTIP threat

There is great desire to push the TTIP discussions towards a conclusion during the current administration in Washington as the current front runners to succeed Obama are more protectionist sounding on the campaign trail. However that may change when they get into office! When pressed on the TTIP threat by the Irish Farmers Journal this week, EU Agriculture Commissioner was adamant that any TTIP deal would also have to be balanced and it was the substance of the deal that was important, not the speed at which it is concluded. Full report in next week’s Irish Farmers Journal which will be accompanied by a podcast.

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