In 2019, the then Department of Enterprise, Trade and Employment commissioned an independent economic and sustainability impact assessment, ESIA, which both my Department and Teagasc fed into. The ESIA, which was published in July 2021, estimated that beef imports from the Mercosur countries into the EU would increase by approximately 53,000 tonnes. The study noted that, assuming the additional imports were in high-end cuts only, and depending on other factors, producer returns in Ireland could fall by around 2%, due to the increase in imports to the EU. This would translate to a maximum reduction in the value of Irish beef output of between €44 million and €55 million based on export figures available at the time of publication.
On sanitary and phytosanitary, SPS, standards, the study notes that the implementation of the agreement does not in any way lower EU standards regarding market access for Mercosur, including on beef. The EU's SPS standards are amongst the highest in the world and are non-negotiable. The Government is firmly of the view that these standards must continue to be rigorously upheld for the benefit of European consumers. This is a matter I raised directly with the Commissioner, Mr. Várhelyi, following the recent recall of Brazilian beef and the need for Europe to increase the number of inspections, both in third countries and at our border control posts, which was agreed to by Europe before Christmas. We have Mercosur beef coming in to Europe and have had 200,000 tonnes at a very high tariff rate. The Mercosur agreement is about what the tariff is for it. It is not that it does not come in. In some ways, the food safety and SPS standards are non-negotiable. We do not allow hormone-fed beef. We have very strict control on our antibiotic use here among our farmers and consumers are reassured of that, and we expect any produce that comes in from anywhere outside of Europe to meet those same standards. The issue for farmers has been on the environmental standards, which I can talk to later.
The Government has been very clear about Ireland's concerns in relation to the EU-Mercosur agreement over a number of years, particularly its potential impact on the beef sector, the strength of its climate and sustainability commitments, and the food safety and environmental standards in Mercosur countries, due to which we had to have safeguards, irrespective of what tariff rate the product comes in at.