Explainer: what clauses are in Mercosur to for Irish farmers

The European Union (EU) has released information about how Irish farmers might be protected from challenges due to the EU-Mercosur trade deal.

The agreement was reached with the South American countries after negotiations concluded at a summit in Uruguay.

The EU has now published a document that says that the trade deal is “opening a wealth of opportunities for people in Ireland”.

The document lined out supports for Irish farmers in case of market disturbances, as well as that distinctive Irish food and drink products would be protected.

Quota

To protect the interests of Irish farmers, a maximum limit will be put on the number of agri-food products imported from Mercosur that benefit from lower tariffs.

This will be 99,000t for beef - some 1.6% of the EU’s total production; 25,000t of pigmeat - some 0.1% of total EU production; and 180,000t for poultry - some 1.4% of total EU production per year.

In addition, the deal includes a safeguard clause to protect EU farmers against any sudden increase in imports. This is the first time that such a measure has been included in an EU agreement, even for products already subject to a quota.

The documents said that “the [European] Commission stands ready to promptly and strongly assist farmers in the unlikely event of significant market disturbance linked to the agreement”.

Mercosur products must also comply with the EU’s food safety regulations. Sustainability commitments will apply equally to producers on both sides.

Tariffs

The EU-Mercosur deal will remove these 55% tariffs on agri-food products being sold in South America.

Ireland’s export value in 2023 to Mercosur countries was €23.2m and the document said that the trade agreement will help Irish farmers increase their exports to this region.

The agreement will eliminate tariffs on 91% of all products.

Meanwhile, tariffs on machinery and electrical equipment, which currently stands between 14% and 20%, will be phased out for most products.

Geographical indications

The deal will also see Irish cream (liqueur) and Irish whiskey be protected from imitations in South America.

These are the only two Irish products protected, along with some 350 EU food and drink products.

The document said: “Such protection helps make these products more distinct. This will help to sell more Irish products and at more premium prices.”

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