Michael Creed (Cork North West, Fine Gael) | Oireachtas source

The announcement on Friday last of an EU-Mercosur trade agreement marks the end of 20 years of negotiations between the two blocs. While I acknowledge the importance of balanced international trade deals for Ireland's economy, including its agricultural sector, I am disappointed that the agreement includes a significant tariff rate quota, TRQ, that would allow the importation of beef from Mercosur to the European Union at preferential tariff rates, at a time when the beef sector in Europe is facing significant uncertainty because of Brexit. I and my colleague, the Minister for Business, Enterprise and Innovation, along with others, have worked hard with colleagues in other member states to mitigate the potential impact of a Mercosur-EU agreement on European agriculture. While the outcome is disappointing, the length of time it has taken to arrive at this point is at least in part due to the concerted efforts over many years and by many governments of Ireland and other like-minded member states to protect the European Union agriculture sector to the maximum extent possible. In addition to pointing out the considerable difficulties that the concession of a significant beef tariff rate quota would create for the Irish beef sector over a period when the EU beef market is likely to continue to be very delicately balanced, and against the backdrop of a potentially very damaging impact from Brexit, Ireland repeatedly called for a coherence between the European trade policy's objective and its climate change responsibilities to be demonstrated by not extending more favourable conditions to beef imports from trade partners that are producing in a less environmentally sustainable manner. We have focused not just on these market impact and sustainability aspects but also on the size of the quota, the technicalities associated with quota management and the cumulative impact of potential concessions under the range of current and future negotiations in order to mitigate the outcome of these negotiations.

The beef TRQ agreed is considerably less than had been sought by Mercosur countries, which at one point were demanding a quota of 300,000 tonnes. In addition, the TRQ is split between fresh and frozen and will be phased in over several years. As such, if the agreement were to be implemented, its full impact is unlikely to be felt for a considerable time. We must also acknowledge that there may be some opportunities for other sectors, including the dairy and drinks industry. In addition, our colleagues at the Department of Business, Enterprise and Innovation estimate that a potential doubling of annual goods and services exports from Ireland is possible over the period to 2030.

It is early days yet and there are still several steps to be taken before the agreement can be implemented. It will first be put through a process of legal drafting and translation which could take several years. It will then be submitted to the Council for approval by a qualified majority vote and then to the European Parliament for its consent. If provisionally applied at that point, it would still take several years to come into effect. The Oireachtas and other national parliaments will also have a role in ratification. We will examine the text carefully to assess its impact on the Irish economy and on the agrifood sector generally and reflect on the appropriate next steps in terms of engaging further with member state colleagues and examining ways to diminish the potential impact of the agreement.

This is an agreement between an outgoing Commission and Mercosur countries. It is a deal that has not been ratified by any member state or government, the Council of Ministers, the European Parliament or any state parliament. There is some considerable distance to travel, as Deputy Penrose reflected quite accurately. Members have rightly alluded to the environmental concerns around our systems of production relative to those of South American countries and in particular Brazil and the Bolsonaro government. The very fact that within this agreement there is for the first time in a trade agreement a chapter that makes environmental standards a critical issue is an opportunity for us. We can use that and in the intervening period ensure the drafting of the agreement double-stitches that in and so thwarts the ambition of those countries if their environmental standards do not meet the standards required of European farmers. It is a deal breaker. While I do not wish to celebrate the lack of environmental ambition or commitment in those countries, that this is an issue we can use to our advantage should not be overlooked. No agreement has been ratified by anybody yet.

From an agricultural point of view, I consider the deal to be deeply disappointing. I acknowledge that there are opportunities in other areas, including in some respects the drinks industry and dairy sector, but overall in terms of the rural economy and the impact on the beef sector and the 100,000 who gain some element of their income from that sector, it is deeply disappointing.

There are Members in this Chamber who have consistently opposed every trade deal while, at the same time, refusing to acknowledge that the European Union has been a champion of environmental standards and workers' rights. This deal, which is the first that has included a specific reference to environmental standards, may well be an opportunity for us. There is a considerable way to travel and, as Minister with responsibility for agriculture, I will exhaust all opportunities. We are not without friends in this debate. Other member states have expressed serious concerns. The French, in particular, who have concerns about beef, have expressed reservations about sugar and ethanol. We will forge alliances and work to ensure that in the intervening period we salvage the best possible outcome from what is proposed.

I appreciate Deputy McConalogue's point about Commissioner Hogan. In all my dealings with the Commissioner, I have found him to be an ally in trying to mitigate the worst excesses of this deal. I remind the House that working collaboratively with him, the lead negotiator, the Commissioner for Trade, is a member of the Alliance of Liberals and Democrats for Europe, ALDE, which is aligned with Fianna Fáil.

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