EU Commission to push for ratification of Mercosur deal
The European Commission is to adopt a proposal to ratify the EU-Mercosur free trade agreement.
The trade deal was signed in December but has yet to be ratified by European Union member states and the European Parliament.
The Government remains opposed to the agreement in its current form and said it will not support it unless there are sufficient assurances to protect Irish farmers and food standards.
It is understood the text will include legally binding safeguards to ensure that European agriculture will be protected if there are any market-distorting impacts as a result of the Mercosur deal.
However, farming groups in Ireland and across Europe have vowed to oppose the deal, not least because it opens up European markets to South American beef and poultry exports, commodities that are produced much more cheaply than in Europe.
Following adoption by the 27 EU commissioners this afternoon, a text on ratifying the draft treaty will be sent to member states and the European Parliament.
To enter into force, the treaty must be approved by a qualified majority of member states, meaning 15 countries representing at least 65% of the EU population, and the European Parliament.
Blocking the treaty would require at least four member states representing at least 35% of the EU population.
The French President Emmanuel Macron remains opposed to the treaty in its current form unless French farmers are protected, while the Netherlands, Austria and Poland have all expressed reservations.
Italy remains divided on the issue, and if it pivots to the No camp the treaty could fall.
By contrast, big exporting member states like Germany, Sweden and Denmark are adamant the treaty should be ratified given the opportunities the treaty would provide European car makers and pharmaceutical companies.
The EU-Mercosur trade deal has been decades in the making, but its ratification has been given fresh impetus thanks to US President Donald Trump’s attempts to bulldoze the global trading system through aggressive tariffs.
The pact would bring together the combined markets of 780 million people, would be the biggest trade deal either side has entered into and would be based on established global trade rules.
Both the EU and Latin American countries have been badly affected by high tariffs imposed by the Trump administration.
Farmers are expected to protest in Brussels on Thursday against both the Mercosur deal and the EU-US framework agreement on trade.
The lobby group European Coordination via Campesina (ECVC) said the treaty will hit livelihoods and will increase unfair competition, flooding European markets with cheap produce without safeguards for the environment or food safety.
The European Commission said that, unlike previous trade agreements, the Mercosur deal includes a sustainability protocol governing environmental and agricultural safeguards, including a commitment by both sides to complying with the Paris Climate Accord, and a legally binding commitment to halting deforestation from 2030.
The Commission also said that European farmers will benefit from the deal, given that it will cut tariffs of up to 35% on exports to Latin America of European cheese and other dairy products, as well as wine, spirits and chocolate.
The Irish Farmers’ Association (IFA) said the deal would grant market access for 99,000 tonnes of beef and 180,000 tonnes of poultry, both at a zero-tariff rate, which could “decimate” both the Irish and EU beef and poultry sectors, displacing some 18% of current EU production, especially in high-value cuts like steak.
“Ireland would be most impacted by this displacement given we are the largest exporters of beef within the EU,” according to an IFA information note.
“To put it in context, the proposed 99,000 tonnes of additional beef from Mercosur countries is equivalent to about 22% of Ireland’s total annual beef exports.”
The European Commission said the 99,000 tonnes will be reduced to 7.5% and will not fall to zero, and argues that the 99,000 tonnes of beef represent 1.6% of overall European beef consumption, while poultry imports would amount to 1.4% of consumption.
Mercosur countries will also remove duties from more than 90% of EU imports, including the 35% duty on cars as well as tariffs on parts, machinery, chemicals and pharmaceuticals.
The EU will cut duties from all Mercosur industrial goods over a ten-year period.
There are bilateral arrangements to reduce taxes for companies in Brazil exporting critical raw materials to Europe, which the EU currently has to source from Russia and China.
Officials said nickel, copper, aluminium, steel and titanium are all needed for the Green transition.
The Government is expected to study the text carefully.
An EU source told RTÉ News that a dedicated legal act, of the kind not normally included in a free trade agreement, will be included to reassure member states like France and Ireland who have sensitive agriculture sectors that safeguards will take effect if beef and poultry exports from Mercosur countries distort the European market.
Article Source – EU Commission to push for ratification of Mercosur deal