MEPs want impact of South American trade deal on farmers to be analysed

THE European Parliament has supported a demand by Irish farmers to produce an analysis on how meat imports from Latin America would affect European farmers and the beef industry in particular.

A report produced by the EU-wide farmers organisation COPA says it would cost the EU’s beef sector up to €25 billion a year while the IFA says the imports would undercut prices by 30%, making the industry non-sustainable.

MEPs and the farmers joined forces as trade officials from the EU and Mercosur — representing Brazil, Argentina, Paraguay and Uruguay — are due to have their latest meeting on opening up markets to one another.

The EU claims that liberalising the markets would increase EU exports to the rapidly growing Latin American market by €4.5bn a year. They are currently worth €32bn while imports are worth €43bn.

Fine Gael MEP Máiréad McGuinness warned the parliament that the commission appears too ready to make concessions on agriculture to open the market for industrial products and services.

“There is a deep sense of frustration that the commission is hell bent on sacrificing agriculture for trade in other areas, without any real concern about the direct impact of such an approach on EU agriculture, EU consumers, the environment and other issues,” she said.

Although the European Parliament does not have a role to play in the current negotiations, the report which Ms McGuinness helped draw up and passed by a show of hands yesterday is a warning to the negotiators.

“Food products are not the same as cars and trucks — food security is important for the EU and any threat to our food production base must be resisted. Europe will sacrifice farming at its peril, agriculture is more important now than it ever was,” she said.

Mercosur wants the import tariffs reduced or eliminated and an increase in their tariff-free quota for beef, which would significantly cut the price of beef imports from these Latin American countries.

The IFA warn that much of this increased imports would be of high value steak cuts and while they make up a small percentage of the carcass, they can account for up to 40% of the value.

Irish agriculture is at a particular disadvantage as 89% is for export.

EU trade spokesperson John Clancy said next week’s meeting will centre around setting rules on barriers to trade.

“It is exaggerated to suggest that an EU Mercosur trade agreement would destroy the European beef industry,” he said, adding that payments from CAP helped compensate European farmers for the costs of having higher environmental and animal welfare standards.