What is the Mercosur trade deal and what does it mean for Ireland?

Published Dec 6, 2024

Tridge summary

The EU-Mercosur Agreement, the largest trade deal ever negotiated by the EU, remains unimplemented despite being signed in 2019. The deal aims to boost annual trade between the EU and South American countries by billions of euros by reducing import tariffs and providing opportunities for growth and sustainable development. However, the agreement has faced strong opposition from farmers and environmentalists in the EU due to the potential opening of the European market to cheaper South American agricultural products, particularly beef. Opposition to the deal includes concerns about South American competitors not having to comply with European environmental and animal welfare laws, and the potential deforestation associated with South American beef production. Despite these concerns, the European Commission insists that the deal will strengthen worker's rights, fight climate change, increase environmental protections, and uphold high food safety standards. The deal's implementation has been delayed due to opposition from France, Poland, Austria, Denmark, and Ireland, among other countries, raising concerns about the potential impact on global trade and South American links with Europe.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The EU-Mercosur Agreement, signed in 2019 but not yet implemented, is designed to give a significant boost to annual trade worth billions of euro in goods and services between the EU and South American countries Brazil, Argentina, Uruguay and Paraguay. It is the biggest trade deal ever negotiated by the EU and has the potential to see import tariffs of more than €4 billion a year being cut on EU trade with the South American economies, giving a boost to the European car manufacturing and other sectors. However, the deal has provoked sharp opposition from farmers and environmentalists in the EU because it involves opening the European market to cheaper South American agricultural products – including 99,000 tonnes of beef every year. Ireland, which exported 450,000 tonnes of beef in 2021, according to the Central Statistics Office, is among the member states most opposed to the current proposals. For farmers, the focus is on the costs associated with their having to comply with ...

Source: Irishtimes