Masters of distraction

Many farmers and farming organisations put their faith in the legal challenge to the Mercosur trade agreement, hoping it will be scuppered or, at the very least, that serious amendments will be secured. Well, recent developments have shown that nothing meaningful will be delivered by that challenge as we learned that Commission president, Ursula von der Leyen decided to proceed with a provisional application of the Mercosur trade agreement. Those European leaders and politicians who have led the hopefuls up to the top of the hill, will watch them walk a lonely path back down again, declaring that they had tried their best.
I have been involved in lobbying for too many years to remember, and I know the time to achieve any kind of success is when negotiations begin not when the ink is all but dry. Sadly, I feel that in relation to Mercosur, the European farming lobby has been cleverly out-manoeuvered.
This trade agreement is more than 20 years in the making and, where once agriculture ruled the roost in Brussels and the biggest slice of the budget went into the Common Agricultural Policy (CAP), now the numbers employed in agriculture have reduced considerably due to efficiency and the use of smart technology. This, together with what I view as Brussels’ determination to abandon European food security, means agriculture is no longer the brightest star in the heavens.

Job creation over farming 

On one hand, Europeans must have food on the table and Brussels is clapping itself on the back by combining homegrown with imports. On the other hand, Europe has an urgent need to create jobs. In this context, Mercosur comes to their assistance and, if anything buys votes it’s jobs. It is expected that Mercosur could deliver up to 600,000 jobs across Europe. Not only will jobs be created, but tariffs will be considerably reduced for many Member States already exporting to Mercosur countries. The reduced tariffs will be an opportunity to increase exports. Germany is the largest exporter among the EU Member States at over €15.4 billion, annually. Their exports are dominated by, machinery, chemicals, pharmaceuticals, and transport equipment, and, with agreements aimed to reduce tariffs by 91 per cent, this will significantly boost their trade. Ireland Ireland, on the other hand, is small fry with approximately €1.7 billion in exports to Mercosur countries; however we can expect to benefit from reduced tariffs, which will increase exports.

In European terms although Ireland is small it is often influential but, in this case, even if joined by other small countries, I find it hard to believe they will be able to tip the balance against this deal when the large member states are in favour.

The public will decide

As ever, the public will decide whether they will buy imported produce from Mercosur countries, when it will be hard to guarantee the same production standards as home grown. Will they buy it because it may be cheaper than home grown, or will they buy home grown where we know strict standards have been followed? Time alone will tell, but I wouldn’t hold my breath. The public can be fickle and for an extra Euro in their pockets, principals can be easily bought.
Irish farmers with grass-based high quality beef product have a quality brand for which discerning customers, not only in Ireland but throughout the world, will pay a premium. The Government now needs to step in and lead a worldwide promotion of Irish hormone free, quality beef.