I presume the Deputy is referring to high quality beef imports in the context of the proposed Mercosur agreement. I have expressed my concern to Commissioner Fischler about the direction of the Mercosur negotiations and particularly the extent of the Commission's apparent willingness to negotiate an enhanced level of access to the Community market for beef from these countries. It is my view that to concede increased import access to non-EU beef at this time will put Irish and EU suppliers at a disadvantage and will limit the ability of the domestic beef sector to take advantage of the recent CAP reform. One of the important considerations from the Luxembourg agreement was that there would be a reduction in EU production, which would in turn lead to increased returns for those who continue to produce. I am concerned about the handing over of these benefits to non-EU suppliers at this stage in the WTO negotiations. A substantial Hilton quota is already available to the Mercosur countries, amounting to 40,300 tonnes per year at preferential import duty rates. In addition, there are additional significant commercial imports at full duty rates into the EU from these countries. These are possible because of their scale of production in the countries in question and the considerable exchange rate advantage they are experiencing. The import into the EU of high value cuts is of particular concern in that the ability of Irish beef exporters to maximise returns from the marketplace is dependent on maintaining returns from medium and high value cuts. Their efforts are being undermined by the ability of third countries to target their commercial exports, paying full import duties, at the higher end of the EU market while disposing of the lower value part of the carcase on their domestic market or to the global manufacturing trade. By exporting high quality cuts only, as compared to all cuts from the carcase in their natural proportion, third country suppliers are maximising the benefit of their limited volume access to EU markets by securing high value outlets for these high value cuts. A further increase in the Hilton quota to Mercosur would exacerbate this problem. The Commission services have indicated that they are determined that the EU should not pay twice in these negotiations and that any offer is conditional on reciprocation from the Mercosur countries.
Additional Information.
With regard to quality assurance, beef imports into the European Union from third countries must have been sourced in countries and in premises which are currently listed and approved by the European Commission and subject to veterinary audits by the EU's Food and Veterinary Office. In addition, such imports are subject to checks laid down in the harmonised rules prescribed at European level and must be accompanied by the prescribed veterinary health certification from the competent authorities in the country of export.
The Community beef labelling requirements, which are compulsory in all member states, apply to beef sold at retail level within the Community, regardless of whether that beef was produced within the Community or in a third country. Where beef is imported into the Community from a third country it must, at a minimum, be labelled as "Origin: Non-EC" with an indication of the third country in which slaughter took place.