Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 13: To ask the Minister for Agriculture, Food and the Marine if his attention has been drawn to any further developments in the Mercosur talks; and if he will make a statement on the matter. [23342/12]

Simon Coveney (Cork South Central, Fine Gael)
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Free trade negotiations between the EU and Mercosur (a customs union of Brazil, Argentina, Paraguay and Uruguay) which started in 1999 and broke down in 2004, restarted in May 2010. Free Trade Agreement negotiations thus far have focused on the legal text of the draft Agreement, which includes such issues as domestic regulation and licensing, export subsidies and taxes, dispute settlement mechanisms, rules of origin, trade facilitation, and intellectual property rights. The next round of negotiations is set for Brazil in July, when Brazil assumes the Chair of Mercosur.

The Commission signalled at the end of 2011 its intent to work towards an exchange of offers for market access for goods and services by summer of this year, but progress to date has been slow. The question of a possible date for an exchange of market access offers still has to be finalised.

Access to the EU market of beef is the key contentious issue for Ireland in the negotiation of the EU-Mercosur FTA. I have been very active in highlighting my concerns to the Commission, particularly in light of the results of impact assessment studies carried out by the Commission. These show substantial losses for EU agriculture from a Mercosur agreement, and are particularly bad for beef and for Irish agriculture. My Department has submitted a number of technical papers to the Commission outlining mitigating measures to address our concerns. The Commission has shown a willingness to take these concerns and proposals on board.

The impact assessment studies also show that the losses in EU agriculture are offset by projected gains for EU industrial goods and services. Mercosur is identified as important for Ireland's future export growth as part of the Strategy for Trade, Tourism and Investment to extend exporters performance in emerging economies. We have key interests in export sectors including services, technology and beverages. We will be seeking to ensure that a Free Trade Agreement between the EU and Mercosur will reflect the balance of our interests. Of course, recent developments, including the decision by Argentina to expropriate the majority stake held by the Spanish company REPSOL in the energy company YPF has raised certain concerns in the EU about Argentina's compliance with international rules governing trade and investment and while not directly related to the Free Trade Negotiations, may have an impact on the negotiating environment.