The International Trade Committee of the European Parliament has set out its requirements for supporting a new trade treaty between the EU and the US.

The committee’s starting point is that an “exhaustive list” be created of agricultural and industrial products that would either be exempt from trade liberalisation or would at least have a long lead-in period.

It has also said that negotiators should “make every effort” to secure a “safeguard clause” for products that were distorting the market to the extent that they threaten domestic production.

An example of this might include the US dropping lots of steak meat on the EU market, which would disrupt the carcase balance in the EU industry with the consequent pressure on farmgate price.

A demand for the US to lift its ban on beef from the other EU countries, as they have with Ireland, is a predictable demand, as is the request for protection of Product Geographical Indicators (PGIs). This is a much bigger issue in mainland Europe than in Ireland.

Health concerns

In what might be interpreted as a loosening of resolve, the committee urged against “excessive procedures” for accepting imports on health grounds, advocating instead a mutual recognition of equivalent standards.

This is fine in theory, but the example of dealing with E. coli demonstrates the problem. The Americans aren’t as concerned with contamination of carcases as they thoroughly wash the carcase with lactic acid, whereas the European position is to focus on prevention of contamination. There is little enthusiasm for the use of lactic acid in Europe.

Critical issues

The fear for Irish and European beef farmers in particular is the danger of beef being sacrificed to enable agreement on a wide-ranging trade deal.

Just about every industry and EU political leader wants a deal sooner rather than later. With the proper red line safeguards, beef could accommodate a deal, as the US market has been very attractive for manufacturing beef. However, there is a parallel fear that agriculture and beef in particular could be sacrificed by negotiators.