Dáil debates

Thursday, 29 May 2025

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Trade Agreements

9:00 am

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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166. To ask the Minister for Foreign Affairs and Trade the engagement he has had with his “like-minded” European counterparts on the EU-Mercosur free trade agreement; and if he will make a statement on the matter. [16073/25]

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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The looming threat of Mercosur is causing enormous stress in the agricultural community. What level of engagement has the Tánaiste had with like-minded European counterparts, by which I mean those who also do not want to see the Mercosur free trade agreement go through, and will he make a statement?

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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I thank Deputy Whitmore for raising this issue. I share her view and her awareness in terms of the anxiety and concern that there is from farmers, climate activists and many people about this Mercosur free trade agreement. I believe we all share the view that free, fair and open trade is something that we in this country support. It is something that we have done well from economically and beyond that. It is an important part of our economic model. We all get that, and recent developments in the global trading environment have highlighted even more so the importance of market diversification, including an expanded set of EU free trade agreements that support more opportunities for exports and investment, help support jobs and growth at home, maintain strict EU standards on food safety, animal and plant health, and support better environmental and human rights standards around the world.

However, we have always been clear that such agreements have to defend our must vulnerable sectors and that farmers' livelihoods must not be undermined through weak or ineffective environmental standards in other countries. Our position is and remains that which was clearly outlined in the programme for Government, which states that the Government will work "with like-minded EU countries to stand up for Irish farmers and defend our interests in opposing the current Mercosur trade deal.". In our trade negotiations, we have always been guided by standing up for and defending the interests of Irish farmers while also trying to secure enhanced market access opportunities for them and Irish agrifood exports.

Since the Commission announced the conclusion of negotiations, officials from my Department and other Departments, including the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine, have been working together to carefully analyse the text of the additional legal instrument addressing sustainability commitments. I wish to assure the Deputy that my officials and I have continued to engage at EU level at every opportunity with the European Commission - I had a meeting directly with the trade Commissioner, Maroš Šefčovič, on this - and counterparts in EU member states, including like-minded countries. We discussed this recently at a Foreign Affairs Council trade meeting. We did this to voice our concerns with the agreement and to interrogate the outcome of negotiations.

I specifically had a meeting with the French foreign minister, Mr. Jean-Noël Barrot, on 14 April that was exclusively on the topic of the Mercosur agreement where we both reiterated our opposition. This engagement is ongoing.

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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I thank the Tánaiste. France is one of the leading countries in opposition to this. It has said it does not want to see European farmers being used as an adjustment tool for trade. Similar to the Tánaiste, they question the environmental concerns about the deforestation of the Amazon and the weaker agricultural standards in Mercosur countries.

Poland is backing France in a blocking minority within the European Council. Will Ireland also formally join that blocking minority? At this stage, we need to get some formal systems and processes in place so that our agricultural and environmental sectors' fears are allayed and they know Ireland is doing everything possible. The Commission wants to finalise this deal by the year's end. It is important that we formally join France and Poland to oppose this deal.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Our opposition to the agreement is as strong as France's and, potentially, Poland's will be. Let me reflect on whether and when we will formally join that group and revert to the Deputy, but I have been clear in my conversations with the French Government about our opposition. I do not see any sign of the French Government's position changing on that.

Technically, the agreement is undergoing what they call "legal scrubbing" at the moment. It will then be translated into all official EU languages. There is some uncertainty over what form the final Commission proposal to member states will take. It could either be a mixed agreement, which would require unanimous member state approval, or it could be a split agreement with the trade elements applied on an interim basis. As the Deputy mentioned, this is when a blocking minority would come in because it would then require qualified majority voting.

In the interim, relevant Departments will continue their detailed analysis of the agreement. We will continue to work with like-minded countries and make our points to the European Commission about the concerns we have. It is expected that the Commission will present the final agreement package, combining the 2019 agreement and the additional legal instrument, in late quarter 2 or early quarter 3 of this year.

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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If it is split and trade is dealt with separately, my understanding is that it will cause us concerns.

Regarding European partners, has the Tánaiste had any conversations with the Netherlands and Italy? My understanding is that their framing of this is softening. Is the Tánaiste or is the State also trying to have conversations to get them back to a position where they are opposing it?

I am concerned about recent reporting in The Business Post that said the Department was saying it was not as worried about the Mercosur deal and it was not as bad as people thought. Will the Tánaiste provide some comments on that? That is a very worrying message to be sent out to the sector. On the face of it, it would indicate Ireland was not fighting as hard as it should against the agreement if there was a general acceptance within the Department that it was not as bad as it could be.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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We are continuing to engage. I had a meeting with my Italian counterpart, Antonio Tajani, a while ago on this. I intend to seek to speak to him again on it because I read some commentary in a report I got back from Italy recently about some broader discussion in Italy on it. I have not heard directly from the minister on it, so I do not wish to misrepresent Italy's position.

In fairness to the European Commission, it is a statement of fact to say that the new legal instrument is trying to make improvements. That is true. The new deal makes the Paris Agreement an essential element. There is a new deal around concrete commitments to tackle deforestation. There are commitments on trade, women's empowerment and the development of a sustainable supply chain. I acknowledge that the Commission is endeavouring to make the agreement better, but I am also not convinced that the additional legal instrument provides the necessary legally binding assurances that Ireland has insisted upon since way back when. It is for that reason we continue to oppose the agreement.

We have always been willing to work and engage. There have been some improvements but does it meet the threshold of the legally binding assurances we need? It does not.