Phil Hogan was grilled on the EU-Mercosur trade deal at his hearing for the European Commissioner for Trade role on Monday evening in Brussels. He was also questioned on future trade policy, the World Trade Organisation and child labour.
He was asked how he would deal with the situation if impact assessments on the trade deal found issues in Mercosur countries and how the deal affects farmers.
Concerns
“I understand the concerns of agriculture in relation to the deal. When you have to concede certain quantities of product, nobody in the agriculture community could be happy.
“When you look at the cumulative impact… you’ll see it’s a positive outcome for agriculture overall in relation to the CETA, Japan and Mexico [trade deals].
“Mercosur is certainly one where we are going to do a sustainability assessment and economic analysis, [plus] a cumulative impact assessment in 2020 for what [the deal] means for farmers and their businesses.
“By keeping TRQs [tariff rate quotas] as low as we could on beef, sugar, poultry, ethanol, I think we’ve reached a balanced outcome when we look at all the sectors in relation to Mercosur.”
Safeguards are built into quotas for sensitive products
He said by ratification, all assessments hope to show positive outcomes, like in the areas of dairy and olives and wine.
“But safeguards are built into quotas for sensitive products. If there is a surge of imports into the EU market we can withdraw that TRQ for a period of up to four years,” he said.
Pre-ratification
Hogan was also asked if he would consider pre-ratification conditions for the Mercosur trade deal before full ratification of the deal was discussed.
In response, he said that the Brazilian president Jair Bolsonaro had a different policy position before he got elected.
“After he got elected, he decided he was going to take a different approach, where he decided to move with us and sign the Paris Agreement,” he said.
He said that Bolsonaro was talking about 12m hectares of re-afforestation in Brazil by 2030 and an end to logging. “All of us are appalled with what we see in the Amazon. At the moment we don’t have the tools to deal with that yet,” he said.
He added that he was prepared to look at pre-ratification, but warned that if the EU went down that road, then the Mercosur bloc could ask the EU to open up other chapters of the deal as well.
Grateful
In his opening statement, the current Commissioner for Agriculture and Rural Development said he is grateful for the nomination for the role.
“I hope at the end of this hearing you’ll feel able to place your trust in me to do this role,” he said, adding that he hopes to build on the outgoing commissioner’s legacy.
He said that EU trade policy can provide an opportunity for sustainable growth and can give predictability in an increasingly volatile world.
“Trade policy must also be able to evolve. We need to show it is relevant and fit for purpose,” he said.
He said that EU trade policy must reflect EU values, especially in areas like climate action, sustainable development, standards and women’s empowerment.
Five priorities
If successful, Commissioner Hogan said he would have five key policies:
1. Support a stable trading environment by strengthening the World Trade Organisation (WTO).2. Manage relationships and build partnerships.3. Open markets and make trade a reality for EU businesses. Ensure existing agreements are implemented and fully enforced.4. Ensure there is a level playing field internally and externally.5. Ensure that trade is sustainable, that it focuses on EU values and sustainability.He also said that trade in Europe’s DNA and that the WTO is essential, but that needs to be updated.
“We need to uphold and defend [the WTO], but also ensure its rules are fit to address today’s [challenges].
“If confirmed, I will do my utmost to prevent collapse of the WTO disputes mechanism… I will work hard with other WTO members to reinvigorate the negotiating function of this organisation,” he said.
The Commissioner said that there are too many “on the path to protectionism” and that, if confirmed, he will “stand up for EU interests and our values”.
China
The Commissioner highlighted the EU’s relationship with China, saying that the relationship is important and vital.
“It is a source of wealth and jobs on both sides. Companies need to be able to compete on a level playing field, which is not the case today."
He said he would pursue active dialogues on areas of common interest, such as the environment, reform of the WTO and the prioritisation of ongoing negotiations.
For more, see this week’s Irish Farmers Journal
Read more
Redistributing CAP money a priority for new Agriculture Commissioner
Green tape to form the future of farm schemes
Climate action will give farmers new income opportunities - Hogan
Phil Hogan was grilled on the EU-Mercosur trade deal at his hearing for the European Commissioner for Trade role on Monday evening in Brussels. He was also questioned on future trade policy, the World Trade Organisation and child labour.
He was asked how he would deal with the situation if impact assessments on the trade deal found issues in Mercosur countries and how the deal affects farmers.
Concerns
“I understand the concerns of agriculture in relation to the deal. When you have to concede certain quantities of product, nobody in the agriculture community could be happy.
“When you look at the cumulative impact… you’ll see it’s a positive outcome for agriculture overall in relation to the CETA, Japan and Mexico [trade deals].
“Mercosur is certainly one where we are going to do a sustainability assessment and economic analysis, [plus] a cumulative impact assessment in 2020 for what [the deal] means for farmers and their businesses.
“By keeping TRQs [tariff rate quotas] as low as we could on beef, sugar, poultry, ethanol, I think we’ve reached a balanced outcome when we look at all the sectors in relation to Mercosur.”
Safeguards are built into quotas for sensitive products
He said by ratification, all assessments hope to show positive outcomes, like in the areas of dairy and olives and wine.
“But safeguards are built into quotas for sensitive products. If there is a surge of imports into the EU market we can withdraw that TRQ for a period of up to four years,” he said.
Pre-ratification
Hogan was also asked if he would consider pre-ratification conditions for the Mercosur trade deal before full ratification of the deal was discussed.
In response, he said that the Brazilian president Jair Bolsonaro had a different policy position before he got elected.
“After he got elected, he decided he was going to take a different approach, where he decided to move with us and sign the Paris Agreement,” he said.
He said that Bolsonaro was talking about 12m hectares of re-afforestation in Brazil by 2030 and an end to logging. “All of us are appalled with what we see in the Amazon. At the moment we don’t have the tools to deal with that yet,” he said.
He added that he was prepared to look at pre-ratification, but warned that if the EU went down that road, then the Mercosur bloc could ask the EU to open up other chapters of the deal as well.
Grateful
In his opening statement, the current Commissioner for Agriculture and Rural Development said he is grateful for the nomination for the role.
“I hope at the end of this hearing you’ll feel able to place your trust in me to do this role,” he said, adding that he hopes to build on the outgoing commissioner’s legacy.
He said that EU trade policy can provide an opportunity for sustainable growth and can give predictability in an increasingly volatile world.
“Trade policy must also be able to evolve. We need to show it is relevant and fit for purpose,” he said.
He said that EU trade policy must reflect EU values, especially in areas like climate action, sustainable development, standards and women’s empowerment.
Five priorities
If successful, Commissioner Hogan said he would have five key policies:
1. Support a stable trading environment by strengthening the World Trade Organisation (WTO).2. Manage relationships and build partnerships.3. Open markets and make trade a reality for EU businesses. Ensure existing agreements are implemented and fully enforced.4. Ensure there is a level playing field internally and externally.5. Ensure that trade is sustainable, that it focuses on EU values and sustainability.He also said that trade in Europe’s DNA and that the WTO is essential, but that needs to be updated.
“We need to uphold and defend [the WTO], but also ensure its rules are fit to address today’s [challenges].
“If confirmed, I will do my utmost to prevent collapse of the WTO disputes mechanism… I will work hard with other WTO members to reinvigorate the negotiating function of this organisation,” he said.
The Commissioner said that there are too many “on the path to protectionism” and that, if confirmed, he will “stand up for EU interests and our values”.
China
The Commissioner highlighted the EU’s relationship with China, saying that the relationship is important and vital.
“It is a source of wealth and jobs on both sides. Companies need to be able to compete on a level playing field, which is not the case today."
He said he would pursue active dialogues on areas of common interest, such as the environment, reform of the WTO and the prioritisation of ongoing negotiations.
For more, see this week’s Irish Farmers Journal
Read more
Redistributing CAP money a priority for new Agriculture Commissioner
Green tape to form the future of farm schemes
Climate action will give farmers new income opportunities - Hogan
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