Matt Carthy (Cavan-Monaghan, Sinn Fein)
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26. To ask the Minister for Trade, Enterprise and Employment if his attention has been drawn to a report by researchers from the University of Oxford pertaining to the EU-Mercosur trade deal that concluded that mechanisms within the trade agreement to include and protect local communities, track goods and enforce sustainability standards are lacking throughout the proposed terms of the deal; if this report will shape his position on the trade deal; and if he will make a statement on the matter. [27538/20]

Leo Varadkar (Dublin West, Fine Gael)
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As the Deputy will be aware, the EU-Mercosur Agreement is the EU’s largest trade deal to date and includes a Trade and Sustainable Development (TSD) chapter, which the European Commission has highlighted, builds on the highest standards found in other modern Agreements – such as those with Mexico or Japan.  The TSD chapter promotes sustainable development as part of the trade relationship between the EU and Mercosur through commitments on environmental protection, climate change and labour rights. The basis of the TSD chapter is the premise that increased trade should not come at the expense of the environment or labour conditions.  

I welcome that both the EU and Mercosur agreed that strong labour and environmental standards which were seen as vital to the success of securing the Agreement with both parties committed to ensuring that labour and environmental standards are not reduced in order to attract trade and investment.

Critically, the TSD chapter of the EU-Mercosur Agreement is itself subject to a specific dispute settlement procedure. Therefore, should the EU or Mercosur countries consider that the other party is not abiding by the rules, or honouring their commitments, formal government-level consultations can be requested. If the situation is not resolved, an independent panel of experts can be asked to examine the matter and prepare a report with recommendations. This report, including the recommendations, would be made public so that stakeholders and the relevant institutions on both sides can follow up on the relevant issues.

My Department, in conjunction with the Department of Agriculture, Food and the Marine, has commissioned an independent consultancy firm, after a competitive tender process, to undertake an Economic and Sustainability Impact Assessment (ESIA) of the EU-Mercosur Agreement. The ESIA will consist of two equally important and complementary components, namely a comprehensive analysis of the potential economic benefits as well as a robust sustainability impact assessment (including social, human rights and environmental impacts) that the trade Agreement could have in Ireland and the Mercosur countries of Argentina, Brazil, Paraguay and Uruguay.  Similarly, a wide-ranging consultation process will ensure the engagement of all relevant stakeholders in the conduct of the Impact Assessment.

In line with commitments in the Programme for Government, the ESIA is designed to assist Government in formulating its position on future ratification of the Agreement.  Furthermore, the European Commission’s Sustainability Impact Assessment, and other reports such as that published by Oxford University, can form part of the overall analysis work that is being conducted, with a view to informing the Government's approach when the formal legal texts of the Agreement are presented to the Member States by the Commission. In that regard, I have indicated that enforceable guarantees, which strengthen environmental protections, particularly with regard to the Amazon rainforest and climate action, are a priority.