Mercosur trade deal must be rejected

Over the last number of years, many will have heard of the EU-Mercosur trade deal. This international trade deal is an agreement between the EU and the South American countries of Argentina, Brazil, Paraguay, and Uruguay. 

The deal aims to increase bilateral trade and investment, and lower tariff and non-tariff trade barriers, notably for small and medium sized enterprises. This increased international trade seems on the surface a positive advancement. However, there is widescale criticism of the detail of the agreement on the basis of unfair competition, industry bias, and many alarming environmental factors.

In 2019, the Dáil voted in favour of a Sinn Féin’s motion on the EU-Mercosur Trade Agreement. It sent a very strong message to the Irish government that Ireland must reject this deal, a position that had the wholesale backing of family farmers and environmentalists in Ireland. 

However, it seems that the sovereign and democratic wishes of Ireland have fallen on deaf ears and have been conveniently forgotten in Dublin and Brussels. No doubt this is convenient for Germany where the EU-Mercosur agreement enjoys broad support, mainly driven by the export-oriented industrial sectors, such as the automotive industry and mechanical engineering. 

But why should Ireland, especially our rural economy, be placed on the sacrificial altar of international trade to placate German heavy industry and to appease the aspirations of the Spanish Council presidency? This is an unacceptable scenario, and the disregard Brussels has shown for this reality, is worthy of contempt.

In July, heads of state and government from the EU and from Latin America and the Caribbean gathered in Brussels for a special summit for the first time in eight years. A significant point of discussion was Mercosur. 

Trade unions, family farms from all backgrounds, socials movements and environmentalists alike from both Latin America and Europe are united in their opposition to the announcement by political leaders from the EU and Mercosur countries that they were going to press ahead with the EU-Mercosur trade agreement by the end of 2023.

Environmentalists feel that this trade deal is catastrophic, and that backroom deals will further endanger the rainforests, climate and human rights according to Greenpeace in Europe. Their Latin American counterparts, such as Friends of the Earth in Latin America, are resolute in their view that this agreement is one that is neo-colonial and driven by corporate profit. 

I share their view that we need enforceable multilateral socio-environmental agreements. We need to bring greenhouse gas emissions down and protect the world’s carbon sinks, such as rainforests. 

We cannot continue to encourage false market-based solutions, multinational companies’ net zero promises based on carbon offsetting, or dispute panels in free trade agreements that are totally biased in favour of corporate profits. 

• Deforestation in Brazil’s Amazon rainforest fell 34% in the first half of 2023 due to tougher environmental policies of Brazilian President Luiz Inacio Lula da Silva, but more still needs to be done

Assessments from several organisations show that lower tariffs and controls on products like car parts from Europe and beef and poultry from South American countries will accelerate the already alarming rate at which nature is being destroyed.

It is important to recognise that deforestation in Brazil’s Amazon rainforest fell 34% in the first half of 2023, according to preliminary government data, hitting its lowest level in four years. Brazilian President Luiz Inacio Lula da Silva is also enacting tougher environmental policies, a welcome change from his predecessor Bolsonaro whose policies were an existential threat to the Amazon rainforest. However, more needs to be done so that the long-term survival, strict protection, and restoration of the Amazon can occur. 

From an agricultural perspective, farmers in Ireland and across the EU also feel that this trade deal will be catastrophic for their livelihoods. The European organisation representing small-scale farmers, European Coordination Via Campesina, rightly believe that agreements such as Mercosur will make conditions unbearable for small and medium scale farmers. Many of these farmers prioritise local, regional, and national trade markets, providing food security and affordability.

Many farmers and Irish farming organisations are of a view that the EU-Mercosur trade agreement promotes agricultural production and land use in parts of the world that have “no environmental standards”, particularly in relation to the destruction of rainforests that is taking place. 

This is a view that we in Sinn Féin share. Why should they not be held to the same standards as Irish farmers, especially when these producers will get significant and favourable tariff reductions that would see them directly compete with Irish farmers on the Irish and European market? 

The prospect of allowing an additional 99,000 tonnes of beef from Argentina, Brazil, Paraguay, and Uruguay to enter the EU at only a 7.5% tariff rate, phased in over five years, on top of a tariff-free 180,000-tonne quotas each for sugar and poultry, could end any hopes of a revived domestic sugar industry in Ireland, whilst also causing concern for Irish poultry farmers.

This is the position of Sinn Féin, and we will hold Irish MEPs from other political parties accountable should they not join us in opposing this deal. The bottom line is such trade agreements serve corporate interests. In doing so, they threaten our already endangered biosphere, decent working conditions, jobs, and animal welfare, whilst further driving untenable social inequalities. 

Instead of more competition, we need to see better co-operation between the two regions to confront the major challenges of our times, such as the climate crisis, massive biodiversity loss, growing poverty, unemployment, hunger and escalating geopolitical conflicts. 

We live in a world where it is clear that dialogue, diplomacy, mutual beneficial socio-economic co-operation, and multilateralism are without doubt the way forward. We should not for a moment accept or tolerate big finance or corporations hijacking these principles to serve their own selfish and profit driven interests.

Mercosur, as it currently stands, must be rejected.   

• Chris MacManus is the Sinn Féin MEP for Midlands North West