Meat Industry Ireland (MII) has voiced its strong opposition to the proposed Mercosur Trade Agreement, Agriland reported today.
The Mercosur Trade Agreement is a proposed EU agreement that will “open unprecedented access to the countries of Mercosur (South America) for European farmers and food producers.”
The Ibec sector association representing beef, pork and lamb processing members said that the trade agreement, if ratified, could lead to a further 99,000 tonnes of high-value steak cuts entering the EU market.
MII said the agreement will also lead to tariff reductions for the Mercosur beef exporters worth about €400 million per year.
The body also noted the different production methods, as well as differing sustainability and traceability standards between the two markets.
‘Extremely Frustrated’
Speaking at the Bord Bia Meat Marketing seminar in Naas, Co. Kildare today, the director of MII Dale Crammond said, “Meat Industry Ireland beef members remain extremely frustrated.
“Once the deal is fully phased in, Mercosur exporters will have additional market access of 99,000 tonnes and will be better off to the tune of €400 million per annum.
“These impacts will be felt across the entire supply chain and are in addition to the well-publicised differences in production, sustainability and traceability standards between the EU and the Mercosur region.
“Not only would this €400 million be a significant loss of tariff revenue for the European Commission, which could be used to part fund the next CAP [Common Agricultural Policy], it will also have a very significant impact on the EU beef market.”
‘There Is Still Time’
Crammond added that MII’s analysis indicates that once the agreement is fully phased in, the annual reduction in EU beef market output value could reach approximately €1.3 billion.
He said that there would be a disproportionate impact of an estimated €100-130 million to the Irish beef sector.
MII said that South American beef exporters could increase their overall share of the market by leveraging their increased quota access from the windfall tariff reduction gains.
It added that – because there are no volume limits in the agreement – Mercosur countries can continue to selectively target the high value steak market in Europe.
Crammon said, “There is still time to engage politically with the EU leaders to stop the formal ratification of this agreement.
“MII was encouraged to see a commitment in the programme for government this week to work with like-mined countries to oppose the trade deal and the association will seek early engagement on this issue with An Taoiseach and relevant ministers once the government is in place.”
‘Enhance Competitiveness’
Yesterday, the EU Trade Commissioner Maros Sefcovic defended the proposed agreement.
Sefcovic said, “The agreement will enhance competitiveness for EU businesses.
“This is the biggest agreement ever concluded by the EU. It’s four times bigger than the one concluded with Japan.”
However, he did note the frustration expressed by farmers in the EU.
He said, “I’m fully aware that EU farmers are concerned about the potential impact of this partnership agreement on certain agricultural sectors which are already confronted with difficulties.
“Let me assure you that the commission took these concerns very seriously in negotiating the partnership agreement; this is why the EU cautiously negotiated clear limits to the requests by Mercosur to open our beef, poultry and sugar markets.”
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