Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

They also agree that the trade agreement should not constrain the right to regulate on environmental or labour matters, including in situations where scientific information is not conclusive. The parties commit to respecting International Labour Organization, ILO, conventions on forced labour, non-discrimination at work, child labour, freedom of association and the right to collective bargaining. In addition, there are commitments on health and safety at work and labour inspection. All Mercosur countries have legislation that provides for the protection of labour rights and have ratified international labour standards, including all eight fundamental ILO conventions, with the exception of one in the case of Brazil due to constitutional constraints.

The trade and sustainable development part of the agreement is subject to a specific dispute settlement procedure. If the EU or Mercosur considers that the other side is not playing by the rules, it can ask for formal government consultations. If the situation is not resolved, an independent panel of experts can be asked to examine the matter and draw up a report with recommendations. The report and recommendations must be made public so that they can be followed up by stakeholders as well by the relevant institutions on both sides.

The agreement will promote the effective implementation of several multilateral environmental agreements signed by the EU and Mercosur such as the Paris Agreement and the Convention on International Trade in Endangered Species of Wild Fauna and Flora, which imposes a licensing system to authorise all imports and exports of species to which it applies. The EU and Mercosur commit to effectively implementing the Paris climate agreement and co-operating on the climate aspects of trade between the two sides. For example, the Paris Agreement includes a pledge by Brazil to reduce its net greenhouse gas emissions by 37% by 2025 compared to 2005 levels, action to stop illegal deforestation, including in the Brazilian Amazon, and reforestation of 12 million ha along with a pledge by the EU to reduce its domestic emissions by at least 40% by 2030. If the two sides do not comply with those requirements, the deal is void.

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