Eugene Murphy (Roscommon-Galway, Fianna Fail)
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The next Topical Issue matter, the impact on Irish beef farmers of the Mercosur trade deal, has been the subject of much discussion in recent days. One of the four Deputies who raised this matter, Deputy Denis Naughten, is not present but we will allow him to contribute if he arrives.

Charlie McConalogue (Donegal, Fianna Fail)
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It is disappointing that we are discussing a deal approved in recent days that will be disastrous for the Irish beef sector and makes no sense from a number of points of view. From an economic point of view, farmers in Europe are getting prices of as little as €3.65 per kg for prime quality beef. Europe is currently 102% self-sufficient in beef. We have enough beef and facilitating the import of more will place considerable pressure on beef prices. The European Union's 2016 impact assessment on trade deals shows that a trade deal with Mercosur could result in a 16% fall in the price of beef in the EU. From a climate change point of view, this deal flies in the face of efforts to reduce our carbon footprint. It will result in beef produced in a much more carbon intensive manner elsewhere being shipped across the world to this country where we can produce beef in a much more carbon efficient manner. What steps does the Minister propose to take to push back this beef deal? The agreement reached between the EU and Mercosur last weekend is a tremendous political failure on the part of the Minister, the Taoiseach and the Government.

Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Like my colleagues, I am deeply concerned about the impact the Mercosur deal will have on Irish farmers. We all know the position with respect to beef prices, to which my colleague referred. Farmers are under pressure to survive as matters stand. The climate change plan and Brexit are coming down the line. Brexit will have a serious impact on Irish farmers, including on beef exports. I ask the Minister to take that on board. If we allow this deal to proceed, farmers will come under more pressure. I am worried about what will happen to the Irish beef industry and our beef farmers. They will not survive what is coming down the road. The Minister and the Taoiseach must ask the European Union to put a stay on this deal at least until we see the outcome of Brexit. Perhaps then, we will know what will be the future of the beef industry and whether beef farmers will survive. Will the Minister and the Taoiseach ask the EU to hold off on this deal at least until we know the results of Brexit?

Jackie Cahill (Tipperary, Fianna Fail)
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Our beef industry is under major financial pressure. Since my election in 2016, the House has discussed the economic crisis facing the beef industry numerous times. The Taoiseach recently told people the Government would always have their back. That statement rings extremely hollow in light of the agreement with Mercosur, which will be the final nail in the coffin of the beef industry. The point raised most consistently with me by farmers over the weekend was the challenge they will face as a result of climate change. The Commission is talking out of the other side of its mouth on this issue by allowing beef to be transported halfway across the world to displace European beef from European shelves. Brexit will pose a major economic challenge for us. We will be 116% self-sufficient in beef when Brexit takes place, yet the Commission is selling out our beef industry. The only way to describe this agreement is that it is a sell-out by the industrial powers of Europe.

Michael Creed (Cork North West, Fine Gael)
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I thank Deputies McConalogue, Aylward and Cahill for raising this matter. The agreement reached on 28 June on an EU-Mercosur trade deal 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 very disappointed that the agreement includes a significant tariff rate quota 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 have worked hard with other Ministers and the Taoiseach, and with colleagues in other European member states, to mitigate the potential impact of an EU-Mercosur 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 of Ireland and other like-minded member states to protect the European Union agricultural sector to the maximum extent possible.

In addition to pointing out the considerable difficulties that the concessions of a significant beef tariff rate quota would create for the Irish beef sector over a period when the European 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 coherence between the European Union's trade policy objectives 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 only on the EU's 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. It is worth noting in this regard that the beef tariff rate quota agreed is considerably less than that which had been sought by Mercosur countries which, at one point, were demanding a quota of 300,000 tonnes. In addition, the tariff rate quota is split between fresh and frozen product and will be phased in over a period of years. Therefore, the full impact of the agreement is unlikely to be felt for a considerable period.

We must also acknowledge that there may be some opportunities for the Irish dairy sector 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 and there are still a number of steps to be taken before the agreement can be implemented. It will be first put through a process called legal scrubbing and translation which could take up to two years. It will then be submitted to the Council of trade Ministers for approval by qualified majority vote and to the European Parliament for its consent. If provisionally applied at that point, it would still take a number of years to come into full effect. The Oireachtas and other national parliaments may also ultimately have a role in ratification. We will examine the text carefully to assess its impact on the Irish economy and the agrifood sector generally and reflect on the appropriate steps in the context of both engaging further with member state colleagues and examining ways to diminish the potential impact of the agreement.

Charlie McConalogue (Donegal, Fianna Fail)
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As with the Minister for Communications, Climate Action and Environment, Deputy Bruton, during Leaders' Questions this morning, I do not detect any significant push-back from the Minister in respect of this deal. Speaking recently on the issue of climate change, the Taoiseach indicated he intended to eat less beef. It appears that while people are being encouraged to eat less beef, there is no issue at European level with people eating South American rather than European beef. It defies logic that this deal is being proposed at European level. The bottom line is that it constitutes a political failure on the part of the Minister, the Taoiseach and, in particular, Commissioner Hogan who was so central to this process at European level. I know it will be subjected to the legal scrubbing process but the horse has bolted to some extent.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I ask the Deputy to conclude.

Charlie McConalogue (Donegal, Fianna Fail)
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It is now a case of trying to retrieve the situation. The beef element should have been scrubbed from the deal before we found ourselves in this situation. We need to see a stronger line from the Minister and the Taoiseach in terms of ensuring this deal is resisted.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I ask Deputies to obey the rules on time. I have a job to do.

Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Government members like to be good Europeans. We like to be the good boys who will do whatever is asked of us in Europe. This is a serious issue. Agriculture and its offshoots are the biggest indigenous industry in Ireland. Beef is one of the main offshoots of the agricultural sector. We consume 10% of the beef we produce and export the remaining 90%. Half of our beef is exported to Britain, with 40% exported to the rest of Europe. Brexit is coming down the line in the next three months and we do not know where 50% of our beef production will go. The 40% we export to Europe will be undermined by the Mercosur deal. Something has to give here. Rather than being the good boys of Europe, the Minister and the Taoiseach must go back to the EU and say enough is enough and we must protect the beef sector, our biggest indigenous industry.

Jackie Cahill (Tipperary, Fianna Fail)
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The pig and poultry sectors are also undermined by this deal. Some 25,000 tonnes of pigmeat imports will be allowed into Europe at a reduced tariff and 180,000 tonnes of poultry meat imports will also be allowed in. That will have a huge impact on the European meat market.

Commissioner Hogan, who was appointed by the previous Fine Gael-led Government, has allowed this to happen. When Ray MacSharry was Commissioner, he tailored CAP reform to suit Irish farmers. I regret that we now have an Irish Commissioner who has sold out our beef industry. A 22-month premium introduced during Mr. MacSharry's time suited steer production.

It was a vital economic lifeline for the Irish beef industry. We gained billions of euro from it. Here we have all that work now being undone by the Commissioner, Mr. Hogan.

Michael Creed (Cork North West, Fine Gael)
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The constraints of this particular debate do not allow for a full articulation of all of the issues.

However, I do not accept Deputy McConalogue's assertion that this is a done deal. This is a high-level agreement at a political level between the Commission and Mercosur member states. It is a deal that has not been approved by any Government, the Commission, the European Parliament, Council of Trade Ministers or, indeed, national parliament.

Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Has it not been written as a done deal?

Michael Creed (Cork North West, Fine Gael)
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I did not interrupt the Deputy.

I consider there to be a considerable distance to travel before we have an inked deal that bears the imprimaturof Europe. What we have is a proposed deal.

Certainly, we intend to use the time between now and then to influence in whatever way. In the context of this issue, we are not without friends in Europe. For example, we have made common cause with the French, the Poles and the Belgians. As I said, this is not a done deal.

In the cut and thrust of political debate, I appreciate Deputy Cahill thinks the Commissioner, Deputy Hogan, is in play for this, but I would remind the Deputy that this deal was negotiated by the Commissioner, Dr. Malmström, who is a member of Alliance of Liberals and Democrats for Europe, ALDE, in Europe which is the group that Fianna Fáil is aligned with.