ISME has welcomed the provisional commencement of the EU–Mercosur trade agreement on Friday 1st May, describing it as a landmark development that will create a trading bloc of over 700 million people. ISME has also called for a greater focus on the deal’s many benefits and urged Ireland to take full advantage in the years to come.
The association called the Irish debate on the deal disproportionately negative, with its risks overstated and the benefits largely absent from commentary.
Neil McDonnell, Chief Executive of ISME, said: “This deal will boost economic activity, strengthen global partnerships and create new opportunities for Irish exporters, while maintaining EU standards on food safety, environmental protection and fair competition. The fact that US farmers are opposed to Mercosur, due to concerns that European producers will outcompete them in South America, speaks volumes about the strength of EU agriculture. This is an opportunity for Irish exporters, not a threat, and we need to take full advantage of this deal and make the most of it.”
ISME said a number of claims about the agreement do not stand up to scrutiny:
- Access to the EU market for sensitive products such as beef, poultry and sugar will be strictly limited through quotas, preventing any risk of market flooding.
- Imports under the agreement will remain subject to EU sanitary and phytosanitary standards.
- The agreement will not contribute to deforestation, contrary to some claims.
- Poultry quotas reflect growing EU consumption rather than displacing domestic production.
- Additional quotas for products such as honey and rice address existing supply gaps within the EU market.
ISME said the downsides of Mercosur have been “catastrophised”, while the upsides have not been communicated effectively to businesses or consumers. It pointed to the experience of the EU–Canada Comprehensive Economic and Trade Agreement (CETA), which faced similar opposition prior to its provisional application in 2017 but has since delivered tangible benefits for exporters and reduced costs for consumers.
The association also said the agreement comes at an important moment for global trade, as protectionist pressures increase internationally.
