Business Minister Heather Humphreys: Mercosur deal ‘isn’t all bad’

Business Minister Heather Humphreys has said the Mercosur deal “isn’t all bad” for Ireland and that there will be significant benefits for some sectors. As the Government scrambles to address a backlash over the EU’s €90bn trade deal with South American countries, ministers are trying to allay fears, saying it will be years before it takes effect.

The controversial deal, which will allow an estimated 99,000 tonnes of beef to be imported from South American countries into the EU annually, will be debated in the Dáil tomorrow. Statements will be delivered by ministers as well as Opposition parties, but the Government has not agreed to a Fianna Fáil request for a full emergency debate on the issue.

Speaking to RTÉ yesterday, Ms Humphreys attempted to play down concerns, especially among farmers, over the agreement. She said there will be “benefits for exporters in other sectors such as business services, chemicals, machinery, medical devices and dairy”. She added there will have to be a complete analysis of the economic impact of the agreement.

“We have the time and space to do that,” added Ms Humphreys. She said the deal is an agreement “in principle” and it will not be implemented for “seven to eight years”.

Taoiseach Leo Varadkar has already committed to having a full economic assessment done of the agreement’s impacts on different sectors in Ireland. Who does the study, how, and when it will be completed has yet to be decided.

Farmers claim the deal will result in cheap and substandard beef ending up alongside Irish steaks in supermarkets. However, supporters of the deal point out that it will help exports of pharmaceuticals, confectionery, and alcohol, as well as the car industry.

Mr Varadkar has also not ruled out Ireland opposing the deal and seeking support from other unhappy member states to form a majority to block it when it comes before the EU Trade Council in two years’ time. The complex voting system means the deal needs numbers representing an estimated 65% of the EU’s population to pass when it is voted on.

Ms Humphreys added: “We need to go through this deal fully to see if it is good for Ireland. Obviously there are serious concerns.”

She said she “honestly believed” that Brexit was a far more pressing issue.“We need to step back and realise that we have the time to examine the full impact of the deal.”

The Green Party yesterday warned that the agreement opens an “already saturated EU market to more beef imports, from countries where agriculture is a main cause of deforestation, while favouring the export of EU cars”.

Labour called for the deal to be rejected. Agriculture spokesman Willie Penrose said: “Currently, nine out of every 10 of cattle that are produced on Irish farms have to be exported.

“Farmers are already feeling the pinch as beef prices are significantly under the cost of production, and the looming threat of Brexit continues to pose a threat to farmers’ livelihoods. From an environmental perspective, this deal should not be allowed to proceed.”