EU bows to pressure and removes beef from Mercosur trade deal
IFA salutes move by Brussels to withdraw beef from table of trade talks
A wholesaler inspects beef carcasses that hang inside a refrigerated room at the Cibevial slaughterhouse in Corbas, France. Photograph: Robert Pratta/Reuters
The deal, which encompasses €115 billion in annual trade, had been expected to include a more preferential tariff regime for beef imports from Mercosur countries.
However, this was removed at the last-minute following a determined campaign by several member states and a host of farming organisations, including the Irish Farmers’ Association (IFA) and the Irish Cattle and Sheep Farmers’ Association (ICSA).
European farmers fear they will be unable to compete with cheaper beef imports from South America, where the cost of production is significantly lower than in Europe.
Ireland, which exports more than 90 per cent of its beef output to Europe, is uniquely vulnerable to competition from South America.
ICSA president Patrick Kent said the threat posed to the Irish beef industry by vast quantities of cheap South American beef flooding European markets “was very real”.
“While the removal of an offer to the Mercosur block of a substantial tariff rate quota for beef is good news, we cannot become complacent on this issue,” he added.
“Beef is a vital national interest for Ireland and under no circumstances can we allow the EU Commission to use it as the bargaining chip in the Mercosur negotiations,” he said.
Trade commissioner Cecilia Malmström and commissioner for agriculture Phil Hogan are understood to have agreed changes to the EU’s initial negotiating position at a meeting last month.
This followed heated exchanges at a meeting of the EU’s trade policy committee the previous day, where 14 delegates criticised the timing of the negotiations, which coincide with crashing commodity prices and falling farm incomes.