Mercosur deal to move to next stage
European Union ambassadors approved the EU-Mercosur trade agreement, despite Ireland’s opposition to the deal.
The trade deal between the European Union and the South American Mercosur bloc was approved last Friday although Ireland, France, Poland, Austria and Hungary opposed the deal and Belgium abstained. The rest of the EU member states approved the deal.
The agreement will now progress to the European Parliament for consideration.
The endorsement of the agreement is a key milestone in a very lengthy process to create the world’s largest free-trade deal between two of the biggest markets in the world in terms of population size and trade volume.
Chambers Ireland and International Chamber of Commerce (ICC) Ireland welcome the passing of the Mercosur trade agreement, describing it as a great opportunity for the Irish economy and a welcome boost for free, open trade which has been so instrumental in Ireland’s economic success.
Chief Executive Ian Talbot highlighted the importance of the agreement for businesses in Ireland and across the EU. “The approval of the Mercosur agreement marks a decisive moment for Irish and EU businesses. It will help stabilise the trade environment and build much-needed resilience into our supply chains. In a time of ongoing geopolitical instability and the lingering effects of tariffs, this agreement will help reduce vulnerabilities and create new opportunities for Irish exporters. Protection of investments and Intellectual Property are also important elements.”
He emphasised the strategic value of the deal: “Forging strong partnerships with key markets is the cornerstone of the EU’s free trade agenda. The success of the EU-Canada (CETA) agreement has already shown how new free trade agreements can open up new supply chains for critical raw materials and reduce our reliance on traditional markets. The Mercosur agreement, given the size and scale of the market involved, will deliver even greater benefits - including for Ireland’s agri-food sector, which now has improved access to up to 280 million new consumers.
“Implementation of this new agreement must be properly executed, and the EU and member states must ensure that the safeguards negotiated to protect important agricultural sectors are monitored and rigorously applied. The approval of the EU–Mercosur agreement sends a powerful message to global markets that the EU remains committed to open trade and is capable of delivering ambitious agreements. This progress reinforces confidence among other major economies currently engaged with the EU - such as Indonesia, India, Malaysia, the Philippines, and the UAE - that Europe is serious about advancing free and fair trade,” he concluded.
Opposition correct
“The Irish Government was right to stick to the commitments made to the Irish people in the last election and in its own Programme for Government and oppose the Mercosur trade deal,” said Fianna Fáil MEP Billy Kelleher.
“I’m a free trader to my fingertips and it annoys me that I cannot support this deal. There are many positives to it but unfortunately the section regarding beef imports into the European Union is sub-optimal and not acceptable to me.
“While some positive tinkering around market distortion safeguards has been included, the fundamental issue of sub-standard beef, produced to lower health and safety requirements, entering the European food chain remains,” he added.