There have been repeated calls this week for An Taoiseach Leo Varadkar to not reappoint European Commissioner Phil Hogan for a second five-year term. It is an understandable reaction given the fallout from the Mercosur trade deal. Hogan, as Commissioner for Agriculture, was centrally involved in this, though it is the primary responsibility of the European Commissioner for Trade Cecilia Malmström to lead on trade deals and she had the strong backing from a number of heads of state, most noticeably the German Chancellor.
Easy to say time is up
On the surface, the desire to punish Hogan for his involvement in a trade deal which has the potential to sell out the Irish beef industry is understandable and creates an ideal opportunity for his political opponents; but is it in the interests of Irish farmers to let Hogan out to grass?
Up until this point in his role as Commissioner for Agriculture, Hogan was largely viewed by Irish farmers as highly effective and competent. He used his influence within the college of commissioners to secure support for the agricultural agenda, evidenced by the €1.7bn funding secured to fight the market downturn following the Russian trade ban - subsequently triggering the diversion of skimmed milk powered into intervention. Also, his work on banning unfair trading practices and efforts to open up new international markets for EU agricultural products cannot be ignored.
What benefit is there for farmers in allowing Hogan make these commitments and then simply walk off into the sunset?
From an Irish perspective, we should also keep the recent Brexit aid package of €50m in mind. But Hogan is a seasoned politician and therefore well aware of the fact that legacy achievements do not secure a future in politics.
Make him see it through
However, while accepting the frustration of Mercosur, farmers should ask if keeping Hogan in Brussels best serves their interests. In an interview earlier this week with the Irish Farmers Journal, the commissioner gave the most unequivocal assurances to EU and Irish farmers in relation to the production standards and environmental controls that will be place on beef imports from South America as part of the proposed trade deal.
He is now on record assuring farmers: “If Mercosur does not meet the environmental conditions set down in the agreement and mirror 100% EU standards, then the deal is off.” One of the key requirements will be for Brazil to stop one of its most aggressive deforestation programmes to date and actually replant 1m hectares per annum for the next 12 years.
Only time will tell the value of safeguards
Hogan went further by highlighting the “red button” mechanism that would be used if South American imports were shown to be depressing the EU beef market and prices returned to farmers.
Given the EU's track record, farmers are right to be sceptical of any assurances by Brussels to commit to actually imposing EU production standards or environmental conditions on South American imports.
However, the assurances put forward by Hogan over the past week go further than we have seen before. A 100% alignment with EU standards is very different to the approach taken to date where equivalent standards were seen as adequate. This approach saw the EU accept traceability practices in Brazil such as tagging animals only 90 days prior to slaughter. Clearly Hogan’s commitments this week will now force Brazilian farmers to have a full lifetime traceability system.
Would a new commissioner be any better?
So the question is what benefit is there for farmers in allowing Hogan make these commitments and then simply walk off into the sunset? Irish farmers would be better served by keeping him within the college of commissioners and holding him to account for the delivery of the commitments he has made over the past week than having a new Irish commissioner, probably in a less central portfolio, who could wring their hands and say that Mercosur wasn’t agreed on their watch.
Mercosur shock but Brexit must remain the focus