A new trade deal between the EU and Australia could be agreed as early as next week, opening the prospect of further competition for Irish farmers due to imports of meat.
The Government, which opposed the recent Mercosur agreement with South American companies, will support the Australian deal, according to several people familiar with the issue.
Although details have not yet been finalised, drafts of the agreement suggest that some 30,000 tonnes of Australian beef will be permitted in the EU market every year, raising the prospect of additional competition for Irish beef farmers.
European Commission president Ursula von der Leyen is scheduled to fly to Australia over the weekend, a journey complicated by travel disruptions due to the Middle East conflict. The head of the EU’s executive branch is expected to arrive on Monday morning local time, for a meeting with Australian prime minister Anthony Albanese the following day.
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The two leaders will aim to hammer out a final deal in the meeting. Both sides are expected to haggle for concessions on the final quota rate for exports of beef and sheep meat in the trade pact, said one EU official.
France and Poland, two other EU states that opposed the Mercosur deal, have not been vocal in expressing concerns about the proposed trade pact with Australia. It is understood that Paris views the deal much more favourably than the EU-Mercosur agreement, because there were not the same concerns about beef being produced to lower standards, as was the case with the South American trade deal.
Copa-Cogeca, an umbrella organisation representing the European agriculture sector, said it had serious concerns that the final deal may not strike the right balance.
“While recognising the strategic and economic importance of strengthening ties with Australia, it is essential that any agreement reflects a genuinely balanced partnership,” said Copa president Massimiliano Giansanti this week.
Giving “disproportionate” concessions on meat quotas risked undermining European farmers and distorting the EU market, said Giansanti.
Irish Farmers’ Association (IFA) president Francie Gorman told the Farmers Journal this week that the deal was another significant concern for farmers.
“This is another deal with a large exporting nation with lower production standards and significant economies of scale. The proposed deal also includes sensitive products such as beef and sheep meat,” he said.
The IFA mounted a large campaign against the Mercosur deal, pressuring the Government to vote against it, though it was approved by a majority vote.
A vote by the European Parliament to refer the agreement to the European Court of Justice has not stopped it from being provisionally implemented, following a decision of the European Commission, which has responsibility for trade matters on behalf of the EU.
Sources in Government say that, having opposed Mercosur, Dublin could not credibly stand against another trade deal.
