Denis Naughten (Roscommon-Galway, Independent)
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1581. To ask the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 566 of 9 July 2019, the steps he has taken to provide data to support the climate threats posed by the Mercosur deal; and if he will make a statement on the matter. [42521/21]

Charlie McConalogue (Donegal, Fianna Fail)
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Following the announcement of the EU Mercosur political agreement in June 2019, the Government launched a full Economic and Sustainability Impact Assessment (ESIA) to establish the impact of the agreement on Ireland.

The Department of Enterprise, Trade and Employment, which leads on Trade policy for Ireland, contracted Implement Consulting Group to carry out this independent research, and my Department and Teagasc participated on the Steering Committee.

The terms of reference for the ESIA included provision of a detailed analysis of potential environmental impacts, both direct and indirect, of the future agreement for Ireland and Mercosur, and the process included a wide-ranging consultation with Irish agri-food stakeholders and non-Governmental Organisations.  The final report was published on 21st July 2021. 

The environmental analysis in the ESIA estimates the environmental impact of the agreement to be relatively marginal.

Without mitigating actions, global Green House Gas (GHG) emissions are forecast to be 0.03% higher in 2035 than they would have been due to the Agreement. On land use and deforestation, it notes that the overall trade-induced impacts from the Agreement are projected to be marginal and, as a result, land use intensity in Mercosur is also expected to increase slightly by up to 1%, driven mainly by grains, vegetable and fruit production. 

The agreement includes a detailed chapter on Sustainable Development, and recognises the need to address the urgent threat of climate change and the role that trade has in this regard. It also underscores the importance of both Parties implementing the provisions of the Paris Agreement. The ESIA confirms this, and highlights an explicit mechanism whereby concerns can be raised about environmental and labour conditions on a bilateral basis in a manner that is transparent and subject to public accountability.

I believe it is critical that these environmental provisions are strictly adhered to for the agreement to progress. I also note that additional text to the Agreement on climate and deforestation is currently being negotiated to strengthen these provisions. The Government, including my Department, is inputting to these discussions at EU level. It makes no logical or moral sense for the Mercosur bloc to be allowed to flout environmental conditions when countries like Ireland play such a leadership role in this space.