The Minister for Agriculture, Food and the Marine, Michael Creed, is “deeply concerned” about the potential impact of the much-disputed EU-Mercosur trade deal on the Irish beef sector.
Last night, Friday, June 25, it was announced that the EU has agreed to increase the volume of its beef imports from the Mercosur bloc – comprising Argentina, Brazil, Paraguay and Uruguay – by 99,000t.
Although the EU is already a well-established trader with the region – the EU imported almost 270,000t of beef and veal from the four Mercosur countries last year – the decision has sent shock waves throughout the Irish farming community and Leinster House.
In a statement Minister Creed said that while as a small open economy, Ireland is generally supportive of international trade deals, he is “very concerned” about the possible impact of this agreement.
I am very disappointed that this agreement includes a significant tariff rate quota for South American beef, at a time when the beef sector in Europe is facing significant uncertainty because of Brexit.
“We have made concerted efforts, over a long period of time, to minimise the EU offer in terms of beef and while evidence of these efforts appears to have been reflected in the final offer, I am, nonetheless deeply concerned at the potential impact on the Irish beef sector.
“There may be some opportunity for other agri food sectors such as dairy and for the drinks industry, but we will need to examine the text carefully to assess the full impact,” he said.
The Process
Meanwhile, the Minister for Business, Enterprise and Innovation, Heather Humphreys, has highlighted that the agreed beef tariff rate quota of 99,000t “is considerably less” than has been sought by the Mercosur countries.
“I note the outcome of the agreement reached. It will take some years before this agreement comes into effect.
“It will be put through a process of legal scrubbing, which could take up to two years, before being put before the European Trade Council for ratification by Qualified Majority Vote, and the European Parliament.
“After that, the agreement will be brought in on a phased basis over six years,” she said.
Minister Humphreys said “significant efforts” were made by Ireland and other member states to “mitigate the impact “of this deal on European agriculture.
The beef tariff rate quota of 99,000t agreed is considerably less than has been sought by the Mercosur countries, who at one point were demanding a quota of 300,000t.
“The deal will now go through legal refinement, which could take up to two years, before the process of ratification by the European Trade Council, the European Parliament and ultimately member states begins,” she said.