The Daily Star Ireland
European Commission President Ursula von der Leyen has praised the Mercosur trade deal as a mutually beneficial agreement. The European Union and South American countries have finalized a free trade treaty, with von der Leyen traveling to Uruguay to complete the long-delayed deal. She described it as a significant milestone, highlighting its importance in fostering trade relations amid global trends toward isolation and fragmentation.
Despite the agreement, the deal still requires approval from at least 15 of the EU’s 27 member states, representing 65% of the EU population. Spanish Prime Minister Pedro Sanchez called the agreement historic, noting it creates an unprecedented economic bridge between Europe and Latin America.
However, French President Emmanuel Macron has expressed opposition, deeming the deal unacceptable in its current form. Poland, Italy, the Netherlands, and Austria have also raised concerns, while Germany and Spain have shown strong support due to their interest in expanding trade opportunities.
Von der Leyen’s arrival followed the collapse of Emmanuel Macron’s government due to a no-confidence vote, leaving Macron searching for a new prime minister. The deal, which has been in the works for two decades, aims to establish one of the world’s largest trade partnerships, significantly boosting the flow of beef and grains.
The Mercosur group, including Brazil, Argentina, Uruguay, and Paraguay, is holding a summit in Montevideo. Von der Leyen, just starting her second term, faces significant opposition to the deal at home, especially from European farmers who fear an influx of cheap South American commodities that do not meet the EU’s environmental and food safety standards.
Addressing these concerns, von der Leyen emphasized the agreement’s alignment with the Paris Agreement on climate change and efforts to combat deforestation. She acknowledged Brazilian President Luiz Inacio Lula da Silva’s efforts to protect the Amazon, stressing the shared responsibility of preserving it.
She assured European farmers that their concerns have been heard and addressed, with the deal including safeguards to protect their livelihoods. Once ratified, the agreement would facilitate the EU’s export of cars, machinery, and pharmaceuticals to South America, while allowing Brazil and its neighbors to sell meat, sugar, rice, honey, soybeans, and other products to Europe with fewer restrictions.
The treaty aims to eliminate most import taxes between the EU and Mercosur, creating a vast free-trade area with over 700 million consumers. Negotiations included changes to various aspects, such as government contracts, services, intellectual property, and the environment.
Irish Farmers Association President Francie Gorman voiced significant concerns about the Mercosur deal, questioning whether there is sufficient support in Europe to finalize it. He urged Irish political leaders to oppose the deal, highlighting its potential negative impact on rural Ireland’s economy, particularly for beef and poultry farmers. Gorman stressed that agriculture should not be sacrificed in trade deals and expressed doubts about Brazil’s ability to meet EU standards for beef production.
IFA’s National Livestock Committee Chair Declan Hanrahan echoed these concerns, warning that the deal could flood the European market with cheaper beef, devastating local producers. He emphasized the lack of regulation and traceability for Brazilian beef compared to European standards.
Fine Gael MEP Sean Kelly also acknowledged the challenges in verifying the sustainability and standards of products from Mercosur countries. He expressed a current inclination to vote against the deal but remains open to further discussions based on practical and logical considerations.
