As talks on the formation of the next government get under way, the parties involved will not welcome the political agreement by the EU and four South American countries of the Mercosur trade deal. The agreement, in negotiation for 25 years, was reached by European Commission president Ursula von der Leyen and four South American leaders at a summit in Uruguay. It now goes to EU countries for approval.
Mercosur has long been opposed by Irish beef farmers, fearing competition from the countries involved – Brazil, Argentina, Uruguay and Paraguay – and has been criticised by climate activists. The outgoing Government had expressed concern about the deal and rural Independents are to raise it in government formation talks, seeking a commitment that Ireland will oppose the agreement.
There are, indeed, reasons to ask questions, but also the need to take a balanced view. As a small exporting country, Ireland has benefited hugely from a succession of global trade agreements. Mercosur involves big cuts in tariffs and creates a market of 700 million people and so will be supported by big industrial countries, notably Germany. France, on the other hand, has branded the deal as " unacceptable” and Italy has reservations.
To block the trade deal a minimum of four states with 35 per cent of the EU population would need to vote against it. It could also be voted down in the European Parliament. National parliaments would have to approve non-trade elements of the deal in areas such as investment, leading to speculation that the Commission could try to strip out the trade element on its own and push it through.
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The sensible approach for Ireland is to examine the full details of the agreement including its implications for agriculture, food safety and the environment, but also the benefits in terms of promoting free trade, and then decide. More likely there will be an early commitment to say no. Whether enough other EU countries do likewise to allow the deal to be blocked remains to be seen.