Creed says climate change protections in Mercosur agreement a 'deal breaker'

Agriculture Minister Michael Creed has said climate change protections built into the Mercosur trade agreement were a “deal breaker” which could be used to thwart the EU-South America pact.

Outlining his opposition to the deal, which farmers fear will see cheap and substandard beef enter the EU market, Mr Creed said Ireland could rely on environmental standards to frustrate the pact.

Global climate change policies agreed under the Paris Agreement to reduce carbon emissions must be adhered to for the first time by Mercosur members under the agreement.

The €90bn deal, with Argentina, Brazil, Paraguay, Uruguay and Venezuela, will see 99,000 tonnes of beef imported into the EU annually. It will be two years before countries are asked to agree the pact.

But already, there are claims Brazil has accelerated its deforestation and is cutting down large tracts of rainforest for cattle grazing. Speaking in the Dail, Mr Creed said any breaches of climate rules could be cited by Ireland.

The very fact that within this agreement there is for the first time in a trade agreement a chapter that makes environmental standards a critical issue is an opportunity for us.

“We can use that and in the intervening period ensure the drafting of the agreement double stitches that in and so thwarts the ambition of those countries if their environmental standards do not meet the standards required of European farmers.

"It is a deal breaker.

“While I do not wish to celebrate the lack of environmental ambition or commitment in those countries, that this is an issue we can use to our advantage should not be overlooked.”

The surprise remarks are contrary to Taoiseach Leo Varadkar's pledge to keep an open mind about the deal and assess its economic impact on all sectors.

Mr Varadkar said Ireland has yet to decide whether to support or oppose it. Opposing it will require joint opposition with other member states.

It has yet to be clarified if individual parliaments, including the Dail, will have the power to veto it too.

Mr Creed, facing a backlash from farmers who say that Mercosur will hurt every rural parish, added that the trade pact was “deeply disappointing”.

Ministers have stressed in recent days that joint opposition to the Mercosur terms or the level of beef imports could be mounted ahead of any vote on it.

Mr Creed added: “Other member states have expressed serious concerns, the French, in particular, who have concerns about beef, have also expressed reservations about sugar and ethanol.

We will be forging alliances, working to ensure that in the intervening period we salvage the best possible outcome from what is proposed.

Business Minister Heather Humphreys, whose department oversees the deal for Ireland, said there were other farming sectors that could be hit by Mercosur.

“While beef has been in the headlines in recent days, there are also very real concerns in relation to the poultry and pig sectors.”

The food market would not be flooded by inferior meat, she pledged:

The agreement ensures that there will be equivalent standards. EU SPS [Sanitary and phytosanitary] standards will not be relaxed in any way and remain non-negotiable.

"The highest EU standards will be applied to all imported goods, especially food, so no hormone beef or GMOs will be allowed. I assure farmers that equivalent standards are an integral part of this agreement.”