Chambers Ireland welcomes EU approval of Mercosur deal
Chambers Ireland and ICC Ireland have welcomed the passing of the controversial Mercosur trade agreement.
The deal between the EU and Mercosur (Mercado Común del Sur), the South American trade bloc made up of Argentina, Bolivia, Brazil, Paraguay, and Uruguay, has faced long-standing opposition from Ireland.
The deal was agreed in December 2024 after 25 years of discussion; its supporters, led by Germany and Spain, hoped that it would offer the EU access to major strategic markets.
The accord will create a market of more than 700 million people.
However, the Irish Government was just one of five countries to oppose it over fears it would heavily impact the beef industry.
Irish farmers are deeply unhappy about the extra 99,000 tonnes of beef the deal will allow Mercosur countries to sell into the European market.
Farmers fear losing out to Brazilian and Argentinian meat that is cheaper to produce and faces less red tape.
But Chambers' chief executive Ian Talbot insisted the deal was good for Irish businesses.
“The approval of the Mercosur agreement marks a decisive moment for Irish and EU businesses," he said.
"It will help stabilise the trade environment and build much-needed resilience into our supply chains.
"In a time of ongoing geopolitical instability and the lingering effects of tariffs, this agreement will help reduce vulnerabilities and create new opportunities for Irish exporters.
"Protection of investments and Intellectual Property are also important elements.”
He emphasised the strategic value of the deal, saying: "Forging strong partnerships with key markets is the cornerstone of the EU’s free trade agenda.
"The success of the EU-Canada (CETA) agreement has already shown how new Free Trade Agreements can open up new supply chains for critical raw materials and reduce our reliance on traditional markets.
"The Mercosur agreement, given the size and scale of the market involved, will deliver even greater benefits - including for Ireland’s agri-food sector, which now has improved access to up to 280 million new consumers."
He added: "Implementation of this new agreement must be properly executed, and the EU and Member States must ensure that the safeguards negotiated to protect important agricultural sectors are monitored and rigorously applied.
"The approval of the EU–Mercosur agreement sends a powerful message to global markets that the EU remains committed to open trade and is capable of delivering ambitious agreements.
"This progress reinforces confidence among other major economies currently engaged with the EU - such as Indonesia, India, Malaysia, the Philippines, and the UAE - that Europe is serious about advancing free and fair trade. Ireland must play its part in delivering on this message for future trade agreements,” he concluded.
Aidan Scollard, Partner at Baker Tilly Ireland, gave a lukewarm response to the news of the deal.
"While Mercosur is a large trading bloc, the direct advantages for Ireland appears limited to specific export sectors rather than the wider economy," he said.
"Existing tariffs on car parts, machinery, chemicals, and pharmaceuticals are high, so there may be some opportunities for reduction in input costs, although Ireland does not currently import large volumes from the region.
"For some importers, Mercosur could become a more attractive alternative to China, given tariffs and quotas applied there, potentially easing pressure on constrained supply chains.
Irish farmers are deeply unhappy about the extra 99,000 tonnes of beef the deal will allow Mercosur countries to sell into the European market
"There may also be modest benefits for Irish pharmaceutical exporters by opening up alternative markets at a time when trade tensions are high, particularly with the US.
"The impact on Irish agriculture is likely to be concentrated in commodity and processed food segments, with beef quotas weighted towards lower-value frozen product where price, rather than provenance, can often be the primary driver."
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