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

I appreciate the opportunity to address the Seanad this afternoon. The Mercosur agreement reached last Friday was arrived at following 20 years of negotiations.

It is important to acknowledge just how vital international trade deals are for Ireland. As a small, open, export-led economy, we very much support balanced international trade. The key word there is "balance". The Government needs to go through this deal in detail to see if it strikes the right balance for Ireland. As somebody who lives on a beef farm, I absolutely recognise and appreciate the genuine concerns expressed by our farming community over the Mercosur deal. The Government hears those concerns and we understand them.

We need to recognise the positives in this deal for Ireland. There are significant benefits for Irish exporters in sectors such as business services, chemicals, the drinks industry, machinery, medical devices and the dairy industry with a reduction or elimination of tariffs and barriers to trade for these sectors. In 2018, Ireland exported almost €2 billion worth of goods and services to the Mercosur region. Trade with the region has grown by almost one fifth in the period from 2010 to 2016. Against this level of export trade from Ireland to the Mercosur region, we anticipate the EU-Mercosur agreement will allow Irish exporters to expand faster and take advantage of new opportunities. In this regard, analysis by my Department estimates that a potential doubling of annual goods and services exports from Ireland is possible over the period to 2030. The deal ensures Irish whiskey and Irish cream liqueur are protected under the EU’s geographical indication, GI, scheme. There are special provisions for SMEs in the agreement. SMEs benefit most from the simplification of exporting and customs procedures, as the savings accrued are proportionately greater for them. There are also positives for the dairy sector with tariffs on 45,000 tonnes of product, including cheese, milk powder and infant formula, moving from approximately 19% to zero over a ten-year period, presenting significant opportunities for the sector. Those are some of the benefits from this deal and it is important to put those on the record here today.

However, I do not claim that this deal is perfect. As I said at the outset, I absolutely recognise the concerns of our farmers. While beef has been in the headlines in recent days, I know there are also very real concerns in the poultry and pig sectors. Sometimes it is easy to walk into the Dáil or Seanad and criticise the Government and play politics with an issue like this. I come from a rural community and I have spent all my life on a farm. The Government fought to achieve the best deal possible for our farmers.

This is a deal negotiated at EU level. As a member state, Ireland has raised serious concerns over a long period of time over beef access. I have raised these concerns at every opportunity at European Trade Council meetings. I also raised it directly with the trade Commissioner, Cecilia Malmström. As recently as 31 May, I again wrote to her highlighting our serious concerns, particularly given the current challenges and uncertainty facing the Irish beef sector in light of Brexit. There has been a sustained effort across Government on the matter, with both the Minister, Deputy Creed, and the Taoiseach also raising it at the highest levels.

We must remember the South American countries initially sought a beef quota of 300,000 tonnes and the deal on the table offers 99,000 tonnes.While that is still higher than we want it to be, it is important to remember that it is less than a third of what was originally sought. That reduction is due to the active efforts made by Ireland and other member states. It is important also to say that 99,000 tonnes will be split into 45% frozen, 55% fresh, and it is carcass weight equivalent, meaning the whole animal and not just prime cuts.

The agreement also ensures there will be equivalent standards. EU sanitary and phytosanitary, SPS, standards will not be relaxed in any way. They remain non-negotiable. The highest EU standards will be applied to all imported goods, especially food, so no hormone beef or genetically modified organisms, GMOs, will be allowed. I want to reassure farmers that equivalent standards are an integral part of this agreement.

In respect of concerns regarding climate change and deforestation, Mercosur, including Brazil, will have to implement fully the Paris climate agreement as part of this deal. If it does not it is void and the deal falls. I appreciate when this deal was announced last Friday that it struck fear within the farming community. It is important, however, to remember this is far from a done deal. This is an agreement in principle. It has to go through a legal process which could take up to two years. It then has to be voted through by a qualified majority on the trade Council. It also has to go through the European Parliament, where the outcome could be far from certain. After all that, it is highly likely that more than 40 parliaments, including this House will have their say on it. It is also important to remember that the quota for beef would be on a phased basis over five years, so we are talking about a deal here today that might not be fully felt until around 2028.

Meanwhile, we are staring down the barrel of a possible no-deal Brexit on 31 October which could deliver a serious shock to our economy and which, in particular, would have damaging consequences for the agriculture sector. In that context, with serious challenges such as Brexit facing us, we need to take a step back here and look at the bigger picture. That is why my Department, in conjunction with the Department of Agriculture, Food and the Marine, will now proceed to ensure a comprehensive, independent economic assessment is carried out on Mercosur. We have the time and space necessary to do that. The shape Brexit takes and its impact on the agriculture sector will need to be a key consideration of this economic assessment.

The Taoiseach has made it very clear that the Government has an open mind on this deal. As I have outlined, there are benefits in certain sectors but there are also negatives and we need to determine overall if this is going to be a win or a lose for our economy. We should not lose sight of the fact that in recent years we have had EU trade agreements with Japan, Vietnam, Singapore and Mexico which are very positive for our agriculture sector and which, in particular, provide for the export of 105,000 tonnes of European beef. Those were good trade deals for our agriculture sector. Mercosur is a difficult one. I accept that. What we have to do now as a Government is look at this deal in the round. That is what the economic assessment will do and it will ensure that the Government makes a fully informed decision when deciding what position to take when the ratification process on this deal commences in two years.