Matt Carthy (Cavan-Monaghan, Sinn Fein)
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90. To ask the Minister for Enterprise, Trade and Employment the current position in respect of the EU-Mercosur Trade Agreement; and if he will report on any engagements he has had with EU member state Ministers or the European Commission in this regard. [22037/23]

Simon Coveney (Cork South Central, Fine Gael)
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The Mercosur Agreement is designed to cement the close political and economic relations between the EU and Mercosur countries and represents a commitment to rules-based international trade. Since formal negotiations concluded, the global trade policy landscape has changed considerably. The rise in trade nationalism, the economic impacts of COVID-19, the war in Ukraine and the accompanying impacts on global supply chains have demonstrated the importance of diversifying our import and export markets by securing robust and comprehensive trade deals with global partners. The Mercosur Agreement, if ratified, will support that objective.

However, Ireland and other EU Member States have raised concerns regarding the strength of the trade and sustainability commitments in the Agreement. As a response to those concerns, the European Commission commenced a process with the Mercosur region on reaffirming the Agreement’s binding commitments. To that end, the Commission devised a draft interpretative legal instrument addressing sustainability commitments. This interpretative text will have the same legal status as the existing text within the Agreement itself.

In discussions with the Commission and other EU Member States, Ireland has emphasised the need for the Instrument to be comprehensive in its scope and to include binding commitments on climate change, biodiversity, forests, labour rights and other sustainability criteria.

Commission officials are currently engaging with their Mercosur counterparts on the text of the new instrument. I wish to assure the Deputy that my officials and I will continue to monitor developments regarding the instrument proposed as it is in our collective interests that commitments relating to the environment, biodiversity and sustainability remain central to the overall trade agreement reached with Mercosur.