EU – Mercosur Deal

This is a trade deal with South America which would puncture the farming industry in Europe to about €3 billion and 33,000 farm jobs. The deal would allow an annual 200,000 tonne annual increase in beef imports into the EU from Argentina, Brazil, Paraguay and Uruguay.

The negotiations with the Latin Americans has the objective of creating the biggest free-trade zone in the world with 750 million people and trade in goods and services of €84 billion in 2010.

The EU’s Joint Research Centre claims that by 2020 EU beef production would be down by 150,000 per year with prices down 8%. Ireland’s farm revenues would be down by 4% by 2020 due to the high beef percentages in the overall agricultural sector. Farm income would fall by 3% in UK and 2% in France.

EU cereal exports would increase by one million tonnes per year. The Commission claims that there would be €4.5 billion of net economic benefits per year to both regions.

I have a conflict of interest in this having an interest in cows in Clare.