McGuinness fears Mercosur talks will be harmful to Irish agriculture

THE decision of the European Commission to re-open trade talks with South American trade group Mercosur could have far-reaching implications for Irish and European agriculture.

Ireland East European Parliament member Mairead McGuinness issued the warning as the EU and the Mercosur group of countries comprising Brazil, Argentina, Paraguay and Uruguay prepared to re-launch talks suspended in 2004 over trade differences.

Leaders are expected to formalise the move at an EU-Mercosur summit which will be held in Madrid in two weeks.

However, any agreement could meet strong opposition from EU farmers, and face a major hurdle in the European Parliament over fears that cheaper agricultural products from Brazil and Argentina would harm the EU farm sector.

Ms McGuinness, speaking in the European Parliament in Brussels, said the decision to resume the talks is particularly insensitive given that the EU is in the middle of a debate on reform of the Common Agricultural Policy (CAP) post-2013.

“There is a risk that the commission will give concessions in the bilateral talks on the CAP and have to yield further concessions in any re-opening of the WTO talks.

“The CAP discussions are difficult and full of uncertainty about the future of direct payments and market supports.

“The last thing we need now is to see the EU re-opening trade talks with countries like Brazil, which could see a flood of imports of beef and poultry undermining EU producers.

“If this is allowed to happen, Irish beef farmers in particular will be very badly affected,” she said.

Ms McGuinness said the commission is fully aware that these countries want access to the EU for beef and poultry. “They know that they will have to make concessions on these products to make gains in other trade areas.

“This indicates that the commission is prepared to sacrifice agriculture. It is distressing that it is prepared to allow a flood of beef and poultry into the EU.”