As we reported in last week’s Irish Farmers Journal, An Taoiseach Leo Varadkar gave a commitment to farmers that “this Government will always have your back”. He now has an early opportunity to prove that this was more than just a soundbite.
EU-Mercosur trade negotiations are due to resume next week with both sides anxious to strike a deal. As Phelim O’Neill reports, there are growing concerns that this could see Brazilian beef imports granted greater access to the EU market.
There is no doubt that since talks adjourned in Argentina just before Christmas, intense lobbying has taken place across member states to advance a deal. It is no surprise that the automotive industry has been extremely active in turning up the political pressure in Germany, given the potential to secure increased access for luxury car brands into the South American market.
Worryingly for farmers, the impact that any deal giving increased access to Brazilian beef would have on EU farm incomes appears to be moving down the agenda.
Despite strong resistance from European Commissioner for Agriculture Phil Hogan, Commissioner for Trade Cecilia Malmström appears prepared to sacrifice the beef industry in favour of car exports.
This is despite a report produced by the EU showing that increased imports of beef from the Mercosur region as a result of a trade deal would cost the EU beef sector €5bn annually, with prices collapsing by 16%.
Given the export profile of our beef industry, the impact on Ireland would be over-amplified compared to other member states. Despite accounting for less than 1% of total EU citizens, Ireland would be exposed to between 12-15% of the financial fallout from any Mercosur beef deal.
As Phelim O’Neill reports, the EU’s trade negotiator on Mercosur, Sandra Gallina, identified in a briefing this week Ireland as being most exposed to any deal on beef.
This of course would come on the back of ongoing Brexit negotiations where it is accepted that both the Irish economy and the Irish beef industry are most exposed.
Given all this, it is clearly not tenable for an Irish Government claiming to have the back of farmers, nor a European Commission claiming to understand the “Irish problem” in relation to challenges of Brexit, to even consider granting increased access to the EU beef market as part of Mercosur negotiations.
Beyond the economics, any move by the Commission to sacrifice the EU beef sector also calls into question its commitment to protecting EU consumers. Currently, officials from the EU Food and Veterinary Office (FVO) are in Brazil, carrying out a two-week investigation into production standards. This latest mission comes on the back of repeated investigations by the FVO that have identified systemic failings in production and processing standards, and also takes place in the wake of “Operation Weak Flesh”, which exposed serious levels of corruption within the Brazilian beef sector.
Against this backdrop, it should not only be Commissioner Hogan taking Commissioner Malmström to task, but also Commissioner for Health and Food Safety Vytenis Andriukaitis. Malmström cannot be allowed to sacrifice rural economies and EU food safety standards simply to allow Germany export more cars into South America.
In the same way that Canada insisted that chicken was a sensitive product and removed it from trade negotiations with the EU, the EU and the Irish Government should insist that beef is removed from Mercosur negotiations.
There will be nowhere for the Irish Government or the European Commission to hide if increased access to the EU beef market is granted as part of Mercosur negotiations.
The facts are well established and it will be seen as a conscious decision by both parties to damage the Irish beef industry.
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