Opposition from the farming lobby is central to Ireland’s negative view of the Mercosur trade agreement, for which the European Commission is due to publish a formal proposal on Wednesday. Climate campaigners have also expressed concerns about the deal.
Despite these issues, the Government must seriously consider supporting the Mercosur agreement. The world of international trade has been changed by the arrival of Donald Trump and the introduction of his tariff policies. Opening up new markets is vital. And the Mercosur countries – Brazil, Argentina, Paraguay and Uruguay – offer opportunities to Ireland in important sectors.
The detail of the agreement will be debated, including the environmental safeguards and the amount of beef from the Mercosur countries which could enter the EU. Irish farmers argue that this would be unfair competition, particularly on other EU markets. But the quantity of beef involved is limited under a quota arrangement.
An official assessment by civil servants in 2021 outlined the pros and cons of the deal, saying that it could increase Irish exports and estimating that the impact on Irish beef sales would be modest, while farmers would also get some compensation. It also pointed to the importance of proper environmental monitoring of the agreement.
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Nonetheless, the position of the Government continues to be to oppose the deal, albeit that talks with other EU countries to explore the detail are continuing.
The European Commission is likely to introduce the deal in a way in which a qualified majority of member states can approve its trade elements. So far France has led the opposition, driven by its farming lobby, while Poland has also taken a negative view. Even with Ireland also voting no, this would not be enough to block approval, unless at least one other big country rowed in against.
Following its recent deal with Canada, Mercosur would be another step to opening up important new markets for the EU. It is an agreement well worth considering.
