Seanad debates

Wednesday, 3 July 2019

EU-Mercosur Trade Agreement: Statements

 

10:30 am

Photo of Paul DalyPaul Daly (Fianna Fail) | Oireachtas source

That is the 99,000 tonnes we will take, on top of the 270,000 tonnes we take already with tariff, because it is produced cheaply due to the methods. The tariff is paid but the beef remains more competitively priced than Irish and European beef. There is never a good time for a bad story or bad news for any sector. We export 90% of our beef and in turn 90% of that goes to the UK. If there is to be a hard Brexit, as the Minister mentioned, and we lose that UK market, a big part of that beef will have to go to continental Europe. We have been trying to find markets in continental Europe. When the damage caused by Brexit is combined with this Mercosur deal, it will increase what is already 102% self-sufficiency in beef in Europe to 116%. That is based on the European Commission's report on the cumulative economic impact of future trade agreements on EU agriculture, which estimates that the European beef trade will take a hit of €5 billion and a price drop of 16%.It has been suggested that a €1 billion package will be offered to farmers for the disturbance of their markets. In such circumstances, there will be a shortfall of €4 billion. I have taken the €5 billion figure from a European Commission report.

I welcome the Minister's statement. I emphasise that she should continue to argue that a new report that takes Brexit into consideration should be compiled. There are now 27 European countries in this deal. When it was initiated, there were 28 countries. It is most likely that as we go forward, there will be just 27 countries. We are losing one of the stronger economies that would have been factored into the initial negotiations.

The Minister spoke about how the deal will be finally ratified. She concluded by saying it is "highly likely" that it will have to be passed by both Houses of the Oireachtas. That is not very reassuring to me, to anybody else in here or, in particular, to the Irish beef farmers who are watching this debate. That is a sell-out. The deal is either going to have to be passed by these Houses or it is not. There is no veto. I can say here and now that if the Upper and Lower Houses do not get an opportunity to pass or refuse to pass this deal, it is a sell-out. The words "highly likely" are not very reassuring. We need this to be clarified immediately.

I have mentioned climate action with regard to Irish beef farmers. The Minister spoke about the importance of this deal for SMEs. There are positives. I support trade deals that break down trade barriers and help to increase employment and exports. We cannot have a loss in one sector, as this deal will entail, to support other sectors. During this crash, SMEs in rural Ireland were kept going by the farming sector. Now that we have turned the corner, we seem to be turning our back on the agricultural sector at every opportunity. This is a particular problem in those parts of rural Ireland that are most in need of job creation and employment support. The SMEs that live off farming communities are those most in need of our support. We cannot sell them out for other SMEs that may or may not be able to tender for export opportunities to South America.

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