With the Brazilian meat scandal and Brexit still dominating news, various ongoing trade negotiations would appear to have taken a back seat.
However, closing out long-running discussions is now a priority for the EU to demonstrate that despite the difficulty of the UK leaving it is still business as usual in Brussels.
The longest running of these is with the group of South American countries that make up the Mercosur bloc. These discussions started in 1999 and have stopped and started several times since.
Progression
Following the last round of talks in Buenos Aires a couple of weeks ago, both the EU and Mercosur agreed to push for a conclusion.
The next round is scheduled for Brussels in July, but to get the deal closed it will have to be less ambitious than originally intended.
Ag the bone of contention
Agriculture is usually the main sticking point in trade deals, and with South America being Europe’s top supplier of imported chicken and beef, it will be most difficult of all.
However, settling for a less ambitious deal means the Mercosur countries’ ambitions for a huge tariff-free beef quota will be dashed.
They will get something, but it will be much more modest than the 150,000t Brazil is thought to have requested.
More clarity is expected after the July round of talks but with the WTO scheduled to have a meeting in Buenos Aires the week before Christmas, don’t be surprised if an EU-Mercosur trade deal gets signed off there.
Japan closing in
Meanwhile, with Japan being the big loser with the collapse of the Trans Pacific Partnership (TPP) deal with the US, it too is looking to Europe.
This deal has been on the verge of conclusion since before Christmas and again it is agriculture that is holding it up.
This time, however, Irish and EU farmers need have no real concern as we will be the exporter of produce, not Japan. They are one of the biggest importers of agri-food products in the world but extremely protective of their own farmers in a way similar to Norway and Switzerland.
Japan is already a major market for Irish dairy and pigmeat, and consistently one of the top three export destinations for US beef.
With its prices currently 40c/kg ahead of Ireland, the Japanese market has to have considerable potential for beef as well. Expect this deal to conclude soon.
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With the Brazilian meat scandal and Brexit still dominating news, various ongoing trade negotiations would appear to have taken a back seat.
However, closing out long-running discussions is now a priority for the EU to demonstrate that despite the difficulty of the UK leaving it is still business as usual in Brussels.
The longest running of these is with the group of South American countries that make up the Mercosur bloc. These discussions started in 1999 and have stopped and started several times since.
Progression
Following the last round of talks in Buenos Aires a couple of weeks ago, both the EU and Mercosur agreed to push for a conclusion.
The next round is scheduled for Brussels in July, but to get the deal closed it will have to be less ambitious than originally intended.
Ag the bone of contention
Agriculture is usually the main sticking point in trade deals, and with South America being Europe’s top supplier of imported chicken and beef, it will be most difficult of all.
However, settling for a less ambitious deal means the Mercosur countries’ ambitions for a huge tariff-free beef quota will be dashed.
They will get something, but it will be much more modest than the 150,000t Brazil is thought to have requested.
More clarity is expected after the July round of talks but with the WTO scheduled to have a meeting in Buenos Aires the week before Christmas, don’t be surprised if an EU-Mercosur trade deal gets signed off there.
Japan closing in
Meanwhile, with Japan being the big loser with the collapse of the Trans Pacific Partnership (TPP) deal with the US, it too is looking to Europe.
This deal has been on the verge of conclusion since before Christmas and again it is agriculture that is holding it up.
This time, however, Irish and EU farmers need have no real concern as we will be the exporter of produce, not Japan. They are one of the biggest importers of agri-food products in the world but extremely protective of their own farmers in a way similar to Norway and Switzerland.
Japan is already a major market for Irish dairy and pigmeat, and consistently one of the top three export destinations for US beef.
With its prices currently 40c/kg ahead of Ireland, the Japanese market has to have considerable potential for beef as well. Expect this deal to conclude soon.
Read more
MEPs step up efforts to curtail Mercosur deal
Dozens of MEPs call for Brazilian meat ban
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