Matt Carthy (Cavan-Monaghan, Sinn Fein)
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28. To ask the Minister for Enterprise, Trade and Employment the current status of the EU-Mercosur Trade Agreement; and if he will make a statement on the matter. [53596/22]

Leo Varadkar (Dublin West, Fine Gael)
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As the Deputy will be aware, the EU reached political agreement in their trade negotiations with the Mercosur region in June 2019. The Agreement is designed to cement the close political and economic relations between the EU and Mercosur countries and represents a commitment from both regions to rules-based international trade.

The independent impact assessment commissioned by my Department, and published in 2021, concluded that Irish exports to the Mercosur market would be expected to be 17% higher in 2035 under the terms of the Agreement.

However, we have some well-known concerns regarding climate change and the environmental impact of the extensive forest fire we have seen in the Amazon. I have raised these concerns at all political levels, including through my engagement with the Commission and with Trade Minister colleagues in Council.

It is on the basis of these concerns, raised by Ireland and other Member States, that the Commission and the European External Action Service (EEAS) are engaged with the Mercosur countries on negotiating further enforceable commitments on climate and deforestation. Enforceable commitments on matters relating to trade and sustainable development, including environmental and deforestation protections, must be added to the Agreement and we support the work of the Commission and particularly Executive Vice-President Dombrovskis in negotiating additional text. It is anticipated that the draft sustainability protocol will be presented to Member States before the end of the year.

When the final text is presented to Member States, including the additional commitments sought from Mercosur, our position will depend on our assessment of these additional climate and environmental enforcement provisions, as well as the findings of the Economic and Sustainability Impact Assessment, which was commissioned in line with the Government’s stated commitments as part of the formation of Government in 2020 and published in July 2021.