Mercosur deal: Watch: 'We can't rob Peter to pay Paul'

With discussion about a proposed trade deal between the European Union and some South American countries from the Mercosur trade bloc heating up, one MEP has said that while the trade deal may be beneficial for some sectors, it is not possible to "rob from Peter to pay Paul".

Speaking to Agriland at the European Parliament in Brussels, MEP for the Midlands North West, Maria Walsh said: "While it's beneficial to some, if you look at our suckler or poultry sectors...we cannot have trade deals that ultimately eliminate, or bring us the direction of, in my eyes, the beet and sugar factories."

The deal with the Mercosur countries, which has been proposed by the European Commission, would allow 99,000t carcass weight of beef - mainly from Brazil - to enter the EU at a much reduced tariff rate of 7.5%.

The quantity of beef under the quota will be phased in over a five-year period and the European Commission has stressed that stringent safeguards will be in place to protect the EU market.

However farm organisations, not only in Ireland, but across Europe, have argued that the so-called 'safeguards' don't go far enough and even, if implemented, would come too late to save many family farms.

Protection from Mercosur imports

The proposal by the European Commission lays down procedures to which it said will guarantee the timely and effective implementation of bilateral safeguard measures for agricultural products.

It also includes specific provisions as regards certain sensitive agricultural products such as beef, poultry, rice, honey, eggs, garlic, ethanol, and sugar. 

The specific provisions for sensitive products include enhanced monitoring, clear triggers, and rapid response.

The commission added that it will examine, as a matter of priority, cases where there is a surge of imports or a decrease in domestic prices concentrated in one or several member states.

The commission will then launch an investigation if import prices from Mercosur are at least 10% lower than prices of the same or competing EU products and there is:

  • A more than 10% increase in annual imports of a product from Mercosur under preferential terms;
  • Or a 10% decrease in the import prices of that given product from Mercosur, all compared to the preceding year.

If the investigation concludes that there is serious injury (or threat thereof), the EU could temporarily withdraw tariffs preferences on products causing injury.

Under the proposal, the commission commits to:

  • Initiating an investigation without delay upon request of a member state, where there are sufficient grounds;
  • Activating provisional safeguard measures in no more than 21 days after receiving the request in most urgent cases, if there is sufficient risk of harm;
  • aiming to conclude the investigations in four months. 

European Parliament

MEP Walsh, who is a member of the EPP political grouping in the EU, said that she would continue to ensure that the voice of farmers, particularly suckler farmers, is heard.

"It's not just [the European] Parliament that has a say; it's our Minister for Agriculture, our Minister for Trade, and of course our two leaders in both Micheál Martin as Taoiseach and Simon Harris as Tánaiste, and then working with other like-minded MEPs who feel the same," Walsh said.

"Now I have to be very very clear, because I can say one thing and do another, that's not why Irish farmers sent me here...we rely heavily on large member states because it's proportional need for that population.

"Right now the scales are being tipped that Mercosur [trade deal] will pass, but what we do between now and then is, as I said, continue to lobby, make sure the safeguards are in place."

She added that she has argued that if there is several billion euro "in a pot" as part of a crisis reserve fund, which people can avail of should their markets or sectors be impacted, she and others "already know" that the suckler sector will be impacted.

"It's not good enough that we give one, in order to benefit the other," MEP Walsh said.

Related Stories

Share this article