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Trade Agreements

Dáil Éireann Debate, Tuesday - 13 February 2018

Tuesday, 13 February 2018

Ceisteanna (32)

Charlie McConalogue

Ceist:

32. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the status of the latest Mercosur talks at European Union level; and the measures he is taking to protect Irish beef farmers by ensuring that beef does not form part of any final Mercosur deal. [7148/18]

Amharc ar fhreagra

Freagraí ó Béal (6 píosaí cainte)

This is to ask the status of the latest Mercosur talks between the European Union and the four South American countries involved and the measures that the Minister and the Government have taken to protect Irish beef and ensure a final Mercosur deal does not lead to a drop in price and the viability of many farms as a result.

There has been recent engagement between the European Union and Mercosur negotiators on the finalisation of a trade deal. My understanding is there are a significant number of areas of disagreement, both offensive and defensive, between the parties, including in the agrifood sector with respect to ethanol, sugar, geographical indications, beef and dairy. Ireland's position is well understood with respect of beef and it has been communicated at the highest level. It has been reiterated many times by me at Council of Agriculture Minister meetings and through direct contacts with Commissioners Hogan and Malmström. It has also been set out by other Ministers in the relevant EU trade policy fora and by the Taoiseach at European Council and through his own direct contacts, most recently with European Commission President Jean-Claude Juncker and French President Emmanuel Macron. My colleague, the Minister of State, Deputy Andrew Doyle, also made a very strong intervention on this point at the Council of Agriculture Ministers meeting in Brussels on 29 January.

We have worked hard to build a coalition of member states that share our concerns about further agricultural concessions by the European Union in the negotiations and who consider that their offensive interests have not been adequately addressed. Of course, other member states strongly support the conclusion of a deal on the balance of their broader economic interests. Ireland has argued that full account must be taken of the findings of the Commission’s own assessment of the cumulative impact of trade deals on the agrifood sector and that the uncertainty around Brexit has the potential to exacerbate an already delicately balanced EU beef market. We will continue to work with other member states to ensure the interests of European Union agriculture are protected in the negotiations.

As the Minister knows, there is tremendous concern among the farming community and beef farmers in particular as to the impact of the Mercosur deal on the beef sector, as well as what has been offered already as part of the negotiations. It is quite clear an offer of 70,000 tonnes has been made by the European side to the four South American countries in Mercosur. The EU's impact assessment indicates that to have a significant amount of beef of that nature coming into the EU could lead to up to a 16% drop in the EU beef price. This is particularly if this relates to prime cuts of beef. I am sure the Minister has a read on that. Will the Minister update us on the offer of 70,000 tonnes? Does it relate primarily to prime cuts? The 70,000 tonnes would represent approximately 1% of the overall EU beef market, but if it was 70,000 tonnes of prime cuts, it would represent 10% of the total EU prime cut market. Those are the most expensive and highest value cuts of beef so there would be a significant impact on the profitability of beef farming as a result. Has the Minister any feedback in that respect? What is the Department's assessment of the impact this would have on Irish agriculture if the deal proceeded?

The offer of 28 September last year contained a quota of 35,000 tonnes of fresh beef, including an unspecified quantity of high quality beef, phased in over six years at an in-quota rate of 7.5%, as well as 35,000 tonnes of frozen beef, again over six years at 7.5%, with an unspecified amount of this to be dedicated to further processing. I share the Deputy's concern. We are not happy with the 70,000 tonnes that has been offered. The Deputy makes the point about Brexit and the Commission's cumulative impact assessment, which are significant indicators of the problem this would create in the European beef market. It is a static, if marginally increasing, market in terms of consumption levels. We have been working assiduously with like-minded member states on this and the French are the most important ally we have in this context.

It is true to say there are very significant other forces across the European Union favouring a deal and which would willingly trade beef access for access to other agricultural or industrial products. It is a real battle. I have been in contact with Commissioners Hogan and Malmström and I have spoken with the French Minister on a number of occasions about the matter. It is a real cause of concern.

There is no doubt there are significant forces across the European Union that would be quite satisfied to trade beef for concessions in other sectors of the economy. Why would they not? They are not being exposed or taking a financial hit. The reality is the country taking the biggest financial hit will be Ireland because we are such a significant exporter of beef. It behoves us to take a hard line and push against that so we can have an impact and get results. Unfortunately, I have seen that, whereas there is lip service coming from our Government on the concerns, the reality is that at the European level, this is driving on ahead. The offer has gone to 70,000 tonnes and we have every reason to believe it went to 99,000 tonnes at the last negotiation round.

I see from replies to parliamentary questions which I put to the Minister that 70,000 tonnes had been offered in the last round but "our determination is not to have this exceeded". The Government is sort of folding the tent on the 70,000 tonnes offer. Likewise, the Taoiseach has not at any stage clearly said we will object to the 70,000 tonnes offer and we will not have it. The reality is the Government is having it and Europe is plugging on ahead. Unless we see a hard line taken by the Minister and the Taoiseach we will not just be faced with the 70,000 tonnes already agreed but a lot more. Ireland and Irish beef will carry the can for the deal.

I assure the Deputy and the House that the Government and I remain absolutely steadfast in our opposition to a Mercosur trade deal involving significant volumes of beef. We have indicated clearly we are unhappy with the 70,000 tonnes offer for obvious reasons including, as mentioned, the Brexit scenario and the Commission's cumulative impact assessment. The European Council and its decision making process is made up of many member states with many competing interests. We are one voice but we have built a coalition of like-minded member states on this. We are doing everything we possibly can to ensure the view holds sway. At this stage, the negotiations are at a point where the next move with respect to impediments to a deal will come from the Mercosur negotiators. We remain constantly engaged on the matter with every player involved, including Commissioners Hogan and Malmström. I am in contact with like-minded member states, particularly the French, to ensure we get the best possible deal.

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