The president of the Irish Creamery and Milk Suppliers’ Association (ICMSA), Pat McCormack has hit out against the body representing EU spirits producers for supporting the Mercosur deal.
This comes as Spirits Europe and two Brazilian organisations have called for a “swift” conclusion of the EU-Mercosur trade agreement – of which Brazil is a part – before the end of the year.
In a joint statement, Spirits Europe, the Brazilian Spirits Trade Association, and the Brazilian Institute of Cachaca said they support the “prompt ratification” of the deal.
The Mercosur deal, if ratified, will “open up new horizons for EU and Mercosur spirits producers”, with the organisations citing trade as a driver of “global, sustainable economic growth”.
Mercosur deal
The controversial EU-Mercosur trade deal was brokered in 2019 but its ratification has been stalled due to concerns raised by member states, including Ireland.
These concerns include deforestation in Brazil, the potential impact of imports on the EU beef market and the imposition of stricter standards on EU farmers than on South American producers.
Meanwhile, the president of Paraguay has threatened to pull out of negotiations if a deal is not reached before December 6. Mercosur countries include Argentina, Brazil, Paraguay and Uruguay.
Drinks industry
Commenting on the statement, McCormack said that “there were surely bigger considerations to weigh in this that went beyond a desire to sell more whiskey to South American markets”.
“I’m sure that Spirits Europe have satisfied themselves that a Mercosur agreement can be concluded that doesn’t involve a massive and immediate ramping-up of South American beef exports to the EU.
“With the self-evident ‘knock-on’ consequences for forestry clearance and the evictions of indigenous peoples.
“If they have, then perhaps they could share that information and analysis with the rest of us,” the ICMSA president said.
He added that environmental agencies and non-governmental organisations (NGOs) concluded that the envisaged increase in South American beef exports will guarantee even more legal and illegal forest clearances.
McCormack said that it is “alarming” to see that environmental considerations that governed “every decision” of EU farms seemed to be a matter of “little or no consequence” for other sectors.
There was “no sense” that the increase in beef exports which is South America’s “primary motive” for concluding the deal would mean more clearing of forestry and release of carbon, he said.