ISME has warned that delaying the EU-Mercosur trade agreement risks causing real harm to Ireland’s economy and undermining one of the most significant trade agreements ever negotiated by the EU. ISME expressed strong disappointment at the decision of the European Parliament to refer the agreement to the European Court of Justice, a move that could delay implementation of the deal by up to two years.
ISME warned that the economic benefits of the deal have not been communicated, while there has been scaremongering about the downsides. In particular, the Irish dairy sector is set to benefit from removing all tariffs on dairy products and infant formula. In return, only 99,000 tonnes or approximately 1.5% of the EU beef market, 45% of which will be frozen, will be imported to the EU with a 7.5% tariff.
All agri-food imports under the deal will be required to meet EU sanitary and phytosanitary standards and comply with EU environmental rules, and a bilateral safeguard clause is included allowing for temporary protective measures if increased imports threaten serious injury to the EU beef sector.
Neil McDonnell, Chief Executive of ISME, said: “The deal gives Irish exporters a significant advantage at a time when global trade is challenging. We are a small, open economy that depends on exports, competition and access to global markets. Blocking or delaying Mercosur because of exaggerated fears around beef imports, while ignoring the export opportunities it creates, runs directly against Ireland’s long-term economic interests and ultimately harms Irish citizens. The fact that US farmers oppose Mercosur should give Europe confidence that this agreement works in our favour.”
ISME also pointed to the wider political and strategic benefits of the agreement. At a time when global trading relationships are under strain, the creation of a reduced-tariff trading regime between Europe and South America would strengthen long-standing political and economic ties between the two regions, to the benefit of Ireland and its EU partners.
ISME said the period between now and the European Court of Justice’s ruling should be used to clearly articulate the overwhelming benefits of the Mercosur agreement for Irish farmers, exporters and consumers.
About ISME
ISME (the Irish SME Association) represents and supports small and medium-sized enterprises across Ireland through independent advocacy, practical advice, and accessible training and networking. Our mission is to help SMEs start, scale and succeed.
For Information:
Neil McDonnell / ISME – (087) 299 5658 (available for comment)
Nigel Heneghan – (086) 258 7206 – nigel@heneghan.ie
Rory Sweeney – (086) 897 6442 – rory@heneghan
