Dáil debates

Wednesday, 30 May 2018

Ceisteanna - Questions - Priority Questions

Trade Agreements

10:45 am

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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45. To ask the Minister for Agriculture, Food and the Marine the position on the latest Mercosur talks; his plans to protect Irish farmers by ensuring beef will not form part of a final Mercosur deal at EU level; and if he will make a statement on the matter. [23926/18]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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Will the Minister outline the position on the Mercosur talks, specifically what he is doing to protect the interests of Irish farmers and ensure beef will not form any part of a final deal? As he knows, farmers are greatly concerned about the potential impact of additional beef imports from South American and Mercosur countries on prices within the European Union. There is talk that a deal is imminent. I hope the Minister can update us on where things stand and provide reassurance that he is seeking to ensure beef will not form a part of that deal.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Ireland's position on the EU-Mercosur trade negotiations is well known and has not changed. We have consistently opposed any agreement that will have negative consequences for the Irish and EU agriculture sectors and the beef sector, in particular. This position has been reiterated many times, for example, by me and my colleague, the Minister of State, Deputy Andrew Doyle, at meetings of the Council of Agriculture Ministers, as well as by other Ministers in the relevant EU trade policy fora. It has also been done through direct contacts with Commissioners Hogan and Malmstroem and by the Taoiseach at the European Council and through his own direct contacts, including Commission President Jean-Claude Juncker and the French President, Emmanuel Macron.

I have been very consistent in urging caution in the approach to the negotiations. I have expressed Ireland's very grave concerns about the offer of a beef tariff rate quota of 70,000 tonnes made by the European Union to Mercosur last October and our strong view that this figure should not be exceeded. I have been working closely with member state colleagues in that regard and also remained in close contact with Commissioner Hogan on the matter.

There have recently been reports of agreement being reached on other aspects of the negotiations. I would be very concerned if progress on these aspects were to lead to further concessions on beef. I am aware that there will be a further round of negotiations in Montevideo in the week commencing 4 June. In that regard, I continue to remain in close contact with European Commission counterparts and member state colleagues to press Ireland's concerns. In an overall sense, there is, undoubtedly, a need for continued vigilance in the conduct of these trade negotiations. I will continue to insist that they be handled appropriately and in a manner that will safeguard the interests of the Irish and European beef sectors. In that regard, I will also continue to work very closely with member state colleagues. In particular, full account must be taken of the findings of the Commission’s own assessment of the cumulative impact of trade deals on the agrifood sector and the potentially very damaging impact of Brexit on an already delicate balance in the European beef market.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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The Minister should be highly aware, given the studies already carried out, of the potential impact of a Mercosur agreement in bringing additional beef into the European Union. The European Union's own assessment indicated that it would lead to a 16% drop in the prices farmers in Europe get for beef. It would also lead to a €5 billion drop in the cumulative value of the European beef market. I note that the Minister has indicated that he has communicated to the Commission that he does not want to see the 70,000 tonne quota exceeded. That constitutes him giving up the ghost and indicating his acceptance of a figure of 70,000 tonnes being part of any final agreement. Frankly, given the impact it would have on the farming sector, that is simply unacceptable. Will the Minister vote against any deal at European level that has beef as part of it? What will be the ratification process for a final deal? Will it be the case that deciding any tariff rate quota will be a European competence, or will it have to come back to be voted on by this national Parliament? Has the Minister sought the advice of the Attorney General in that regard?

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Our objective is to secure the best deal, of which beef would not be any part. That is what we have been campaigning on. The reality is that an offer of 70,000 tonnes has been made. We are not happy with it, but Ireland is only one member state of the European Union and the negotiations are not being conducted by the Agriculture Commissioner; rather, they are being conducted by Trade Commissioner Malmstroem. I have spoken to Commissioner Hogan about this matter as recently as this week. We will continue to press our case, but we also recognise that trade is a two-way street. In certain areas of Mercosur we see opportunities, particularly in the dairy sector. However, we feel particularly exposed in the beef sector, but we will continue to try to negotiate the best possible deal. "Negotiate" is probably the wrong word to use because we are not a party to the negotiations, but we remain in direct contact.

I have been in contact with Commissioner Malmström in the past and again this week to express our concerns.

It appears that part of the process of ratification may be for domestic parliaments. That remains to be seen from the nature of the deal that is done. At a time when we are seeking solidarity across the European Union on a range of issues, however, it would be inappropriate that we would stand alone in this case, when no deal has been concluded, and isolate ourselves.

10:55 am

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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I thank the Minister.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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What we continue to do within the European fold is to influence and secure the best possible outcome. After that, it will be a decision for all the appropriate bodies, including national parliaments.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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We are yet to do three questions. I call Deputy McConalogue for his final supplementary question.

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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It appears that, as part of the negotiations, agriculture is being expected to take the hit for other sectors of the economy. While we all agree that trade is very important, there must be fairness. Beef, which is particularly important to the Irish economy, is being asked to take the hit so that other parts of the European economy can benefit. Unanimity is required for any deal to be passed, but the Minister for Agriculture, Food and the Marine has rolled over on the 70,000 tonnes figure. That is what he has told the House today. That alone will create a massive difference and represents a massive hit for European beef prices. It is simply not good enough.

That any deal will have to come back to national parliaments for ratification should surely strengthen the Minister's hand in pushing back and trying to fight for Irish farmers to ensure that there are not further concessions and, indeed, that we can row back the 70,000 tonnes figure because of its impact.

The Minister is unclear about whether the Oireachtas will have to ratify any tariff rate quotas. In the case of the Comprehensive Economic and Trade Agreement, CETA, tariff rate quotas are provisionally applied even though ratification is not fully complete. Will the Minister rule out this applying in any Mercosur deal?

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The important point is there is no deal yet. The direction of travel in beef is worrying and we have made our views quite clear on that. I am advised that whether this Parliament ultimately has a say is contingent on the nature of the deal that will be concluded. We see opportunities in certain respects in agriculture but we see significant threats in beef. We will continue to apply all the pressure we can to ensure that the deal is as good as it possibly can be for Ireland, bearing in mind that we are only one of all the member states. This is a minority Government and if this House has a say, it will be the House that decides its view on the agreement. We are applying the maximum possible pressure, bearing in mind that we also benefit from trade deals in Europe and recognise that in the broader context, trade deals are a two-way street. There cannot be a negotiation where we say that we want to sell our products to everywhere else but no one may sell their products to us. That is not the nature of trade deals. The detail is where the question is at and we are trying to ensure the best possible outcome in the detail of beef.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I reiterate what the Leas-Cheann Comhairle said. We have done only three questions in 34 minutes. We have gone way over time and I will be very strict on every side about answers. If we do not, there will be people sitting here in the expectation of answers that we will not reach.

I call Deputy Boyd Barrett who has 30 seconds to put his question.