ICSA president Edmond Phelan has said that dialogue with the EU chief negotiator for Mercosur Sandra Gallina on Monday has done nothing to change his organisation’s view that the Mercosur deal is “an absolute disgrace”.

The newly elected ICSA president and general secretary Eddie Punch attended the civil dialogue in Brussels on Monday.

They quizzed Gallina on three aspects of the deal agreed between the EU and the Mercosur countries.

They asked what the provisions were made in the deal for the EU to withdraw if Brazil did not live up to its commitments on climate change.

They also asked what mechanisms were in place to withdraw from the commitments on a tariff rate quota for beef if there was another issue with Brazilian beef standards like the 2017 meat adulteration scandal.

The pair also questioned whether the ethanol imported from Brazil would be allowable towards targets for crop-based biofuels to make up renewable energy targets and whether the ethanol would meet the sustainability criteria proposed under the European Renewable Energy Directive (RED) 2.

Steak cuts and standards

The ICSA was told that the 99,000t deal agreed could be filled with steak cuts, but must be 55% fresh and 45% frozen.

Gallina told them that under a free trade agreement “you have a guarantee that action will be much faster than it is now”, if Brazil did not meet the required standards.

The European negotiator reiterated that under the Mercosur deal, Brazil had committed not to deforest and even in fact to afforest 12m hectares by 2030.

She added that under the trade and sustainable development chapter of the agreement, every party shall implement such commitments.

If they don’t, Gallina said she would expect immediate action and a dispute panel would examine the issue, with the panel’s report available to stakeholders to examine.

Enforcement

Edmond Phelan said that in the ICSA’s view, there are some clauses in the agreement that might restrict Brazil but everything depends on EU determination to enforce and Brazilian commitment to play by the rules.

“The history of this shows that these things cannot be taken at face value,” Phelan said.

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