Matt Carthy (Cavan-Monaghan, Sinn Fein)
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13. To ask the Minister for Agriculture, Food and the Marine if he will conduct a socio-economic and environmental impact assessment of the proposed EU-New Zealand trade agreement, in particular the impact on the domestic red meat and dairy sectors; and his proposals to support impacted farmers. [37914/22]

Martin Browne (Tipperary, Sinn Fein)
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Will the Minister of State conduct a socio-economic and environmental impact assessment of the proposed EU-New Zealand trade agreement, in particular the impact it will have on the domestic red meat and dairy products sectors? What are his proposals to support those impacted sectors?

Martin Heydon (Kildare South, Fine Gael)
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As the Deputy will be aware, the European Union and New Zealand reached a political agreement in principle on a new free trade agreement on 30 June 2022.

I take this opportunity to inform the House that since the launch of these negotiations in June 2018, Ireland consistently pressed the European Commission to ensure the outcome of these negotiations would be balanced and would take into consideration our concerns in respect of our sensitive agriculture products such as beef, dairy and sheep meat. Ultimately, we must defend the best interests of our farm families. This is a key focus at all times for me, the senior Minister, Deputy McConalogue and for all in government.

In this regard, it is worth noting that the scale of the additional market access for the most sensitive products has been limited to less than 1% of EU consumption levels. The increase in New Zealand's access to the EU markets for these most sensitive products has been significantly limited by way of new tariff rate quotas, which means these markets have not been fully liberalised, thus protecting the interests of Irish and EU producers. This is due to the efforts of Ireland and other EU member states in highlighting sensitivities for our agricultural producers and in limiting the Commission's scope to meet New Zealand's much higher demands in these product categories. An example of this saw the agreed sheep meat quota limited to 38,000 tonnes, which is significantly less than the original 114,000 tonnes offer made by the Commission.

My Department is currently analysing the full draft texts, which were only published last week, in particular on the outcomes on sensitive agri-food products. This analysis is ongoing and is being conducted in conjunction with the Department of Enterprise, Trade and Employment, which is the lead Department on trade policy. This analysis will inform any decision on whether to conduct a socioeconomic and environmental impact assessment of the final agreement.

Martin Browne (Tipperary, Sinn Fein)
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There is a question right now about who benefits most from the proposed trade deal between the EU and New Zealand. This is a valid question to ask because while the EU Commission can talk of both trading partners being winners from reduced tariffs that open up the opportunities for exporters, when New Zealand's top exports are red meat, sheep meat and its imports comprise industrial goods generally, the export benefits for Ireland's agricultural industry seem very limited indeed.

Our family farmers are facing increased costs to produce their goods, and we all know that from what is happening. If New Zealand's beef, sheep meat and dairy are to enter our markets, with the additional injection from this agreement, with these very products coming from elsewhere, demand could fall and prices could be suppressed. A socioeconomic and environmental impact assessment for this proposed deal must be carried out. Our farmers cannot be left to deal with the consequences of what could be a badly arranged deal.

Martin Heydon (Kildare South, Fine Gael)
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I outlined in my initial response the efforts that have been made and that a very close focus has been kept on this in my Department as to the impact this could have here and the need to protect the interests of farm families. The business model of our farm families in this country is very much dependent on the fact we are a small, open nation that exports 90% of the food and drink we produce here. Therefore, as an exporting nation, trade deals are very important. In respect of our place in Europe, it is the case we benefit greatly from the trade deals Europe has undertaken across a number of countries.

If the Deputy is to look at the discussion we were having in the previous question around moving away to new markets through diversification, all those trade deals matter. In respect of these deals, we will look at the sensitivities in these areas and we will protect farmers interests in that regard, but there are a number of offensive benefits to such trade deals as well for our sectors.

Martin Browne (Tipperary, Sinn Fein)
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Lessons are there to be learned from the EU-Mercosur trade agreement, for example. The Government's own economic and sustainability impact assessment on it has resulted in its opposition to that deal. It found it would cost Irish beef farmers €55 million annually as the market would be diluted by another 53,000 tonnes of an increase.

Furthermore, the European Ombudsman accused the EU of maladministration precisely because it did not base the trade negotiations on an assessment of the socioeconomic and environmental impact. This only adds to the case for a similar assessment to be carried out on the EU-New Zealand deal. Will the Minister of State commit to this?

Now that the Government is opposed to the Mercosur deal, why has there been a delay in communicating this to the European Commission? Has the Government notified the Commission of this opposition yet and, if not, will the Minister of State tell this House when the Government intends to do so?

Martin Heydon (Kildare South, Fine Gael)
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As I outlined earlier, the Department of Enterprise, Trade and Employment is the lead Department in trade policy but it takes a very clear direction and has very close contact with the Department of Agriculture, Food and the Marine on such matters. This is an area in which we obviously have a clear insight in respect of the sensitivities that would have an impact on Irish farm families.

Tariffs on EU exports to New Zealand will go down to zero from day one of application of the agreement, which is important to bear in mind, including for key EU export products such as pig meat, pet food, ice cream and dairy products, including cheeses.

The pig meat sector has gone through a difficult time and the Government has stepped in to support it. There are benefits for those areas. The Deputy asked for the analysis that will be done on this. That is ongoing in terms of our next steps as to analysis of the agreement, the details of which were only published last week.