MEPs back stronger Mercosur safeguards as Cowen warns 'real risk' it will pass

Fianna Fáil MEP Barry Cowen has welcomed the European Parliament committee on international trade’s backing of two amendments to the safeguards proposed on the EU-Mercosur free deal.

The first amendment would see the European Commission having to issue detailed beef market reports every three months, instead of every six months, as had been initially proposed.

The second would allow the Commission to trigger market safeguards, such as a raising of the reduced-tariff rate, if it determined that an EU beef price slump of 5% was caused by Mercosur beef.

Previously, this safeguard had been set at a price reduction threshold of 10%.

While Cowen welcomed the passing of the amendments at committee level, the Midlands North West MEP reiterated his intent to vote no to the deal when it is put to the Parliament on 16 December.

Backstop

Making the safeguards as strong as possible, Cowen said, is necessary as a backstop in case the deal receives the MEP and member state majorities needed to take effect.

“Both of the key provisions I pushed for are now in the text, meaning this safeguard mechanism will be more responsive, more transparent and more reflective of real-world market conditions should the deal proceed,” he commented.

“Under the revised rules, the Commission must monitor sensitive sectors every three months and provide detailed, product-specific data.

“For beef and other exposed sectors, that level of oversight is essential. It will give us earlier warning of problems and clearer information when decisions need to be taken.”

Cowen referred to the amendment on the price reduction tool as being “even more important” than the market-reporting changes backed by the committee.

“If there is sustained pressure on prices or any deterioration in the economic situation of the industry, that can now trigger an investigation,” the MEP continued.

“This is exactly the clarification I sought from DG AGRI officials and it finally gives farmers the flexibility and protection they were promised.

“I have been clear from the start that I would vote against the Mercosur agreement if it came before Parliament tomorrow,” he said, warning that “there remains a real risk of it passing”.