At an event hosted by local MEP Jim Nicholson in the European Parliament this week, it was revealed that the Mercosur countries, which include the major beef-producing nations of Brazil, Argentina and Uruguay, have higher import tariffs than the EU by up to 50%.
The revelation was presented in the paper by Dr Siemen van Berkum, an economist from Wageningen University in the Netherlands.
It caused surprise to the audience of MEPs, advisers and officials. The trade weighted Mercosur rates range between 11.3% in Uruguay and 12.7% in Paraguay compared with 8.6% in the EU.
The vast trade imbalance on agriculture products between the EU and Mercosur was also made clear.
Currently, Europe imports €20bn annually from Mercosur countries, but only exports €2bn in return.
Taking everything together, it means that huge resistance has emerged in Brussels over the last week on a potential 78,000t beef offer to Mercosur. With several countries protesting at the trade policy committee last week, the director generals in agriculture and trade took the issues to Commissioners Hogan and Malmström.
Initial offer
It is thought that the College of Commissioners might now exclude agriculture from its initial offer, which is due to be made to Mercosur on 11 May.
Irish Farmers Journal editor, Justin McCarthy also addressed the meeting in Brussels, highlighting what a deal with Mercosur might do for Irish, and EU agriculture, and beef in particular.
He highlighted his findings in Brazil from a number of years back and referred to the 2014 FVO report on Brazil, which found examples of failures in tagging and management of tags.
SHARING OPTIONS