Minister Michael Creed has received a letter from the European Commissioner for Trade, Cecilia Malmström, in response to concerns raised over the impact of an EU-Mercosur trade deal.

In her reply, Commissioner Malmström says she has taken note of Minister Creed’s "reservations" on a potential EU-Mercosur trade deal that would allow increased beef access to the EU market.

The current trade negotiations have been dubbed by some as ‘beef for BMWs’, as the EU has offered 70,000t beef quota for a relaxing of tariffs on European cars and car parts in South American countries.

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However, it has been rumoured that the beef quota could have been increased to 100,000t, and farm organisations and the Minister for Agriculture have vigorously opposed any deal that could impact negatively on beef prices in Europe.

Conceding beef

Responding to Creed’s concerns, the Commissioner writes: “Beef is among the few important exporting interests that have clearly been identified by Mercosur in the negotiations.”

“It is, therefore, not realistic to expect Mercosur to agree to conclude a negotiation removing the steep tariff and non-tariff barriers affecting EU exports in nearly all sectors, including agriculture, without any concession on that product.”

Malmström continues that she acknowledges studies that have been carried out to highlight the sensitivity of the market, but concludes: “Please rest assured of my commitment to find the right balance between the need to shield sensitive sectors from full liberalisation and the many opportunities an ambitious free-trade agreement with Mercosur will represent for the EU.”

IFA response

Commenting on the letter, IFA livestock chair, Angus Woods said: “Effectively, she [Malmström] is admitting that EU agriculture, animal welfare and environmental standards are being sold out for other interests, and that European policy and values are being undermined to do a deal.”

Woods added that the informal Heads of State meeting in Brussels this week is an opportunity for Taoiseach Leo Varadkar to raise this sellout with his counterparts, and to insist that the EU does not give any more concessions to the Brazilians.

“Commissioner Malmström has already conceded way too much with the giveaway of an additional 70,000t of EU beef market access.

"Using all diplomatic and political channels, the Irish Government and Commissioner Hogan need to call stop.”

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