Mattie McGrath (Tipperary, Independent)
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184. To ask the Minister for Jobs, Enterprise and Innovation the position of her Department regarding the Mercosur beef trade deal; and if she will make a statement on the matter. [14256/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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An EU-Mercosur Free Trade Agreement (FTA) would be the EU’s largest trade deal to date, four times the size of the trade agreement with Japan.  It aims to eliminate trade tariffs between the EU and the Mercosur region.  Irish exporters are currently subject to trade tariffs, barriers and restrictions, when exporting to Mercosur.  The proposed FTA should make exports from Ireland more attractive and potentially increase demand for Irish products. 

Sectorial opportunities for Ireland in further enhancing a trading relationship with this region include software and services in telecommunications, financial services, digital content and travel, engineering products and services, life sciences, agriculture, food and beverages, and education services.  Within the region, Brazil is Ireland’s main trading partner and has been identified as possessing “high growth market potential” by Enterprise Ireland. 

From a foreign direct investment perspective, the main opportunities are in the areas of financial services, banking, business services and chemicals as multinationals in the region begin their internationalisation.  It will be an important region for outward direct investment from Irish companies.

In the context of the Mercosur negotiations, Ireland has many “offensive” and “defensive” interests, including in the agri-food sector and engages on these issues with the Commission, in its role as chief negotiator, through various EU Committees. 

While all FTA’s include agricultural market access and TRQs (Tariff Rate Quotas), TRQs provided under such agreements are not always fully utilised by our trading partners.  Equally, most Member States tend to have sensitives in relation to certain goods or services to be comprehended under an FTA.

I am keenly aware of the issues faced by the Agriculture sector and the challenges posed by a trade agreement with Mercosur.  In this regard, Ireland has continued to highlight the cumulative impact of agricultural market access in relation to all EU trade agreements.  My Department has done this through engagement with the Trade Policy Committee in Brussels, as well as joining with other Member States in formally writing to the Commission outlining our concerns.  In addition, our concerns have been raised at political level including this Department’s Ministerial team, myself included, raising the issues with counterparts, both at Trade Council deliberations and bilaterally with the EU Commission and by the Taoiseach with Commission President Juncker. 

Overall, Ireland remains fully committed to this negotiation, especially in view of the important economic and political gains expected for both sides from a comprehensive, ambitious and balanced EU-Mercosur Association Agreement.  However, we believe that any TRQ offered in relation to beef imports must be structured - in terms of its size, staging, composition and the application of in-quota tariff rates - in a way that mitigates the potential impact of a Mercosur deal on the EU beef sector.

It remains unclear what the final outcome of the negotiations will be, although it must be acknowledged that for the Mercosur countries offers on EU agricultural produce are essential to securing any deal.  Ireland will only be in a position to take a view on the proposed Agreement when all elements are finalised, including on sensitive agricultural products such as beef and dairy and our view will be informed on the aggregate benefits the Agreement offers our economy as a whole.