Dáil debates

Wednesday, 10 July 2019

EU-Mercosur Trade Agreement: Motion [Private Members]

 

3:55 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour) | Oireachtas source

As I have stated a number of times over the past two weeks, on behalf of the Labour Party, this deal as constituted is a bad deal for Irish farmers and for the economy, especially the rural economy and the environment. I know the Taoiseach and the Minister for Agriculture, Food and the Marine will not support its ratification in its current guise. Nine out of every ten cows produced on Irish farms have to be exported. We have a 900% oversupply. Farmers are feeling the pinch already and beef prices are significantly below the cost of production. The looming threat of Brexit has to be the immediate focus because it poses a threat to farmers' livelihoods. The European beef market on which we depend is already oversupplied and the introduction of this 99,000 tonnes of fresh and frozen meat into an already over-saturated market makes no sense, economic or otherwise. Therefore our economy and our farmers’ livelihoods cannot be put at risk.

From an environmental perspective this deal cannot proceed. A couple of weeks ago, the Government launched a comprehensive climate action plan which calls for further reductions in carbon emissions from Irish agriculture. Irish farmers have worked hard in recent years to meet higher environmental, health and welfare standards imposed on the sector yet the nations we propose to import beef from come nowhere near close to our standards. Deforestation of rain forests for agricultural use has been common practice in some of the nations involved in this deal. That is not to mention that huge carbon emissions output, which will arise from the transportation of this meat. It is folly to say we are addressing climate change issues at home and then put that at naught by this import. That is why it must be resisted, even on that score alone.

The possibility of a no-deal Brexit is looming large and is the most immediate issue to be addressed. While we are rightly spending some time talking about the Mercosur deal, the loss of our largest beef export market, the UK, will have a devastating impact with 300,000 tonnes involved. That is three times more than the amount we are discussing here, 99,000 tonnes, which is to be distributed around the EU. The 300,000 tonnes comprise the amount of one of our products we put directly into it. The Brexit uncertainty and concerns arising therefrom, such as the weak sterling has severely dented the confidence of farmers in this area. We know how important that is for our rural economy and throughout the country, especially in large areas of the west of Ireland.

We have to put the EU-Mercosur deal into a bit of context from a trade perspective. What we are talking about is not intended to be just a trade agreement between the EU and the Mercosur countries. There was to have been a long-planned partnership agreement but where is the partnership? The draft deal is all about free trade. There is no detail about genuine social and environmental co-operation or about a real partnership between South America and Europe. The Labour Party is not in favour of unregulated free trade. We cannot support the draft EU-Mercosur deal as it is currently constituted. We are in favour of fair trade, which improves workers' rights, protects the environment and offers a fair deal to all sections of Irish society, including our farmers, especially in the beef, pig and poultry sectors. Fair trade does not just happen. It has to be made happen by strong rules and enforcement of those rules. The European Trade Union Confederation, ETUC, and its counterpart in South America, the co-ordinator of central labour organisations, CCSCS, are both committed to the development of a genuine partnership agreement if there are strong guarantees in place. For years, the ETUC and the CCSCS have been calling for a more balanced partnership, based on social justice and guaranteed respect for the environment. Those are prizes worth fighting for but this draft agreement does not deliver same. We have had a significant period of EU membership which has been good for Ireland. Our incomes grew. We would like to see other countries achieve the same level of economic development and progress as Ireland has achieved but we do not want to pull up the ladder behind us. That is why we would welcome a genuine partnership between the EU and Mercosur, as long as it is built on strong workers' rights and environmental protection but the draft deal is not convincing in any aspect of enforcement.

Yesterday, there was a struggle to explain the dispute resolution mechanism that will be used in this deal and how it will work. Any dispute resolution mechanism must be under democratic control, with clear processes that include trade unions, environmental groups and civil society groups. Instead, trade union organisations and other civil society groups have been rebuffed every time they have asked for a place at the negotiating table. All the deal-making has been shrouded in secrecy. Why should we have any confidence that the current draft deal will improve workers' rights and save the rainforest? We cannot. All of that is even before I return to our farmers and farm workers. There is no doubt that this deal is a bad deal as currently constructed.

The deal says European food standards will not be compromised but there is no guarantee that Argentina and Brazil have the technical and administrative capacity to achieve European quality standards at this time. Will there be boots on the ground to ensure biosecurity and phytosanitary standards are observed and adhered to? We are familiar with the work that goes into ensuring high standard food quality. The Food Safety Authority of Ireland does excellent work, as does the European Food and Veterinary Office, which is based in Navan. The work of these organisations provides consumers in Ireland and around Europe with reassurance that the meat they buy is of high quality and is safe for them and their families. What reassurance would we have from Mercosur countries? It is a matter of significant policy difference. The Minister for Agriculture, Food and the Marine, is acutely aware of this. Argentina and Brazil permit hormone treatments and other practices that are illegal in Ireland. There is no tagging in Brazil, no database and no traceability. Foot and mouth disease is rampant. I recall being here in 2000 and 2001 before the Minister came in here. This place almost closed down. It came to a halt because of foot and mouth. We adjourned and we were all around the country fighting that. Why should we allow this become a threat? The deal says there will not be compromise but I do not know about that. There is a reason we do not have European free trade in food. We have a regulated social market approach to farming and that is as it should be. We have tried to keep improving over the years to achieve decent incomes for farmers, increasing productivity and keeping the backbone of the rural economy going. Our farmers cannot compete on a free trade basis with beef coming from Argentina and Brazil. We need a level playing field and the only way to achieve that is to raise the South American farmers up, not lower the economic security and incomes of Irish and European farmers.

We are not going to give up our livestock farmers for this deal nor should we ever contemplate sacrificing them for a tawdry cars for cows accord between the EU and the four countries in the South American bloc. The Labour Party will not support the deal as it stands. We will work constructively to achieve partnership with working people in other countries. Excellent deals have been concluded with Japan and other places. It is on that basis that we support the Sinn Féin motion.

One has to wonder. Many people say this is a provisional accord but environmentalists have indicated that the proposed provisional trade deal is a double whammy for the planet. It exacerbates the deforestation of the Amazon rainforest and encourages the production of gas guzzlers. The most troubling aspect of it is how we can enforce the applicable standards. What is in writing might be difficult to apply in theory. An area the size of a football field is razed every minute in the rainforest. There are no controls. That is why this deal has to be binned in its current form.

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