It looks like we are at another crunch week on the Mercosur deal. The Mercosur summit next week in Uruguay could be a key moment for the deal.

However, even if the agreement is signed, it must be ratified by all 27 EU member states, the European Parliament and all member states’ national parliaments before taking effect.

This would give France a chance to veto it.

Two parts

The European Commission is considering splitting the deal into two parts: a broader co-operation agreement and a trade-focused agreement. The latter would only require a majority vote under EU rules, bypassing the need for unanimous approval.

Under this plan, France would lose its veto power unless it can gather enough support to form a blocking minority. This is where French and Irish opposition along with Poland, Austria and the Netherlands might have a role.

Increased pressure

The IFA livestock chair Declan Hanrahan was over in Brussels this week, and the IFA president’s presence at COPA this week will further ramp up pressure.

Hanrahan suggests that if Italy could be brought onside, then the anti-Mercosur bloc would have the required blocking minority.

After more than 20 years of negotiations, the European Union and Mercosur – a South American trading bloc of Brazil, Argentina, Paraguay, Uruguay and Bolivia – are still trying to finalise a major trade agreement. France, Poland and Ireland are very opposed to the deal.

German farmers seem to support Irish and French farmers: however, German authorities are more ‘pro’ the deal, as a deal would reduce tariffs on cars, chemicals and software, etc.

Harvest report signals positives in tillage, but action is needed

Teagasc released harvest yields and winter planting estimates this week (see p15). Cereal production was similar to last year at 1.9m tonnes, but is down 300,000t from the five year average.

The rise in winter cereal planting area of 27,000ha this year is a positive that should result in more grain in 2025, but we cannot predict the weather.

Overall, production was better than expected, and it helped to keep businesses with positive margins. Looking at average yields for different crops, many farmers will no doubt say they didn’t get a colour of those yields. This week, spring bean crops were still being cut around the country at high moisture levels.

The sector needs a plan to at least maintain the area and production, not to mind increase it. Actions in the Food Vision tillage report call for environmental payments, incentives to plant etc. The season has long since started, but we don’t have any definitive actions.