Government pressured by Independents to oppose Mercosur, even if it can’t stop deal

Brussels pushing for states to sign off on South American free-trade zone with late concessions

Minister of State Michael Healy-Rae has signalled opposition to the Mercosur deal. Photograph: Alan Betson/The Irish Times
Minister of State Michael Healy-Rae has signalled opposition to the Mercosur deal. Photograph: Alan Betson/The Irish Times

The Government faces the risk of internal division over its vote on a contentious EU trade deal with a group of South American countries.

European Commission president Ursula von der Leyen wants to sign the Mercosur trade deal later this month, creating a free-trade zone intended to increase EU exports to Argentina, Brazil, Paraguay and Uruguay in exchange for market access for those countries.

However, Ireland continues to harbour deep concerns over the impact of the deal on the agricultural sector, even as expectations were growing in Government that Italy would support the deal. Italian support would end the possibility of a “blocking minority” of member states coming together.

In that case, Irish opposition to the deal would only be symbolic and voting against it could burn political capital in Europe.

On Tuesday, Minister of State Michael Healy-Rae said he and other Independent TDs supporting the Government expect it to abide by a commitment to work with like-minded countries to oppose the deal.

“We want, quite simply, for the Government to honour what’s in the Programme for Government,” the Kerry TD told The Irish Times.

Further talks on the topic are planned between Coalition leaders as soon as Wednesday. Mr Healy-Rae said he and his brother Danny Healy-Rae, as well as the other Independent TDs supporting the Government, are “resolute in our strong opposition to any talk or any such thing as voting for it”.

Brussels wants Ireland and other member states to back the deal. The commission is understood to be making 11th-hour efforts to sway capitals. This could include financial sweeteners for the farming sector, such as early access to Common Agricultural Policy (CAP) funds.

A Government source in Dublin said, based on an early assessment, that a front-loading of monies was being offered, as well as potentially a small uplift in funding. However, they warned it “still is not enough”.

The source said they have serious concerns about the deal, which are mirrored by farming organisations. Francie Gorman, the Irish Farmers Association president, called on the Government to hold firm ahead of a vote expected to take place on Friday.

Minister for Agriculture Martin Heydon will travel to Brussels on Wednesday for CAP-related talks. This could also allow for bilateral meetings on the Mercosur deal. A Government source said the Coalition has grave concerns on what it sees as preferential access being given to Mercosur, with South American farmers not subject to the same farming standards as European farmers.

Government leaders have pledged to hold further discussions on its position ahead of any vote. Any indication of Italy’s decision will likely prompt the need for further internal talks.

A remote cabinet meeting on the matter has not been ruled out, with the Taoiseach travelling in China. However, a cabinet decision is not thought to be needed to instruct Ireland’s EU ambassador on how to vote on Friday, if a vote is called.

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Jack Horgan-Jones

Jack Horgan-Jones

Jack Horgan-Jones is a Political Correspondent with The Irish Times