Seanad debates

Wednesday, 3 July 2019

EU-Mercosur Trade Agreement: Statements

 

10:30 am

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

I thank all of the Senators for their contributions on the Mercosur trade agreement. The debate here follows on from our discussions in the Dáil this morning. I understand there will be an opportunity for further debate in the Dáil next week. It is only right and proper that we have this debate. It is important that everybody is given the opportunity to fully discuss this trade deal.I have carefully listened to the concerns raised, particularly regarding the impact the deal will have on beef farmers. I come from a farming community so I fully appreciate and understand the genuine concerns that have been expressed by farmers. I have acknowledged that the agreement does not deliver all that the Government may have wanted.

I assure Senators that the Government fought hard to achieve the best deal. I availed of every single opportunity at EU level to raise our concerns, especially in respect of the beef sector. Senators have no need to doubt that I availed of every chance to mention our concerns. I will continue to work to ensure that the concerns raised by farmers are addressed. Other member states had similar concerns to Ireland about the beef sector. In the period ahead we need to consider ways to work with those parties to see if we can diminish the impact on the agricultural sector. I assure Senators that the Minister for Agriculture, Food and the Marine and I will explore all avenues in this regard. There is still a long way to go with this deal and we should not lose sight of the fact that Brexit is a much greater and more immediate challenge facing our agricultural sector.

Naturally, the focus of many Senators is on agriculture but it is important that we recognise the benefits that Ireland will accrue from the deal. There will be opportunities for our SMEs in particular with the opening up of the public procurement sector in Mercosur. This deal will also benefit the dairy industry, business services, the chemical sector and the drinks industry as tariffs are significantly reduced and barriers to trade are lessened.

Ireland exports €2 billion worth of goods, services and trade and the EU-Mercosur agreement should allow us to grow exports further and faster. The deal was only agreed in principle on Friday last and it must go through a number of different stages before it comes into force. It will take up to two years for the agreement to go through a legal scrubbing process. I recall that the EU-Canada Comprehensive Economic and Trade Agreement, CETA, is a comprehensive document of more than 2,500 pages with 500 pages of legal text and detailed text on each tariff line included as part of the deal. That shows that the final agreement will take a considerable time to be completed. In the meantime we will continue to assess the impact of the deal as more detailed information comes to hand.

Regadring the climate impact, the agreement includes a detailed chapter on sustainable development goals, SDGs. It recognises the need to address the urgent threat of climate change and the role that trade has played as well as underscoring the importance of both parties implementing the provisions of the Paris Agreement. The Paris Agreement includes, for example, a pledge by Brazil to reduce, by 2025, its net greenhouse gas emissions by 37% compared with the 2005 levels, a pledge to stop illegal deforestation in the Brazilian Amazon basin by 2030 and to reforest 12 million ha, and a pledge by the EU to reduce its domestic emissions by at least 40% by 2030. There is also a role for NGOs in the oversight of adherence to the deal.

The issue of geographic indicators was raised. We can only protect geographic indicators that exist. We have two protected products on the list - Irish whiskey and Irish cream liqueur. I do not have the full list of 300 products to hand but there is one available and they have all been decided. Products are protected, particularly products that come from certain areas.

The ratification process has been raised. As far as Mercusor is concerned, we understand from the Commission that it will be an association agreement. That means that for the full agreement to come into effect, individual member state ratification procedures are likely to be necessary, including approval by the Oireachtas. We will only be sure of that when we see the text. I am taking it that Oireachtas approval will be legally necessary. I cannot give a commitment on that until we see the text but I hope that will be the case.

My Department, in conjunction with the Department of Agriculture, Food and the Marine, will work to ensure that a detailed, independent economic assessment is carried out to examine the full impact of the agreement on our economy as a whole, including the environmental impact and specifically the impact on the beef sector and the challenges it faces regarding Brexit. We have the time and space to do so. I believe that this is the sensible thing to do before determining the Government's position on the deal. We have time to conduct a detailed examination of the deal and carry out any necessary assessments.

I thank the Senators for their time and their contributions.

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