I propose to take Questions Nos. 249 and 283 together.
Ireland is a small, open economy, and we depend for our prosperity upon good two-way trading relations with the nations of the world. This is at the heart of Ireland’s traditional support for free, fair and open trade. We remain committed to free and open markets, and recent developments in the international trading environment have highlighted the importance of market diversification, including by finalising a number of Free Trade Agreements.
The Government has always been clear, however, that such free trade agreements must defend our most vulnerable sectors and that our farmers’ livelihoods must not be undermined through weak or ineffective environmental standards in other countries. This position is clearly outlined in the Programme for Government, which, in January 2025, stated that the Government would work with like-minded EU countries to stand up for Irish farmers and defend our interests in opposing the current Mercosur trade deal.
Government ministers and officials have engaged intensively at EU level – with both the European Commission and with counterparts in EU Member States, including like-minded countries – to voice our concerns with the agreement. The Government has also remained in regular contact with Irish stakeholders from the agriculture, environment and business sectors, as we sought to fully understand their concerns.
As a result of efforts made by Ireland and like-minded Member States, it is important to state that improvements have been made to the overall agreement package, including a legal act to operationalise bilateral safeguards to protect sensitive products, a financial safety net for farmers, strengthened sanitary and phytosanitary (SPS) controls along with a 50% increase in audits and checks, and commitments on the alignment of production and SPS standards, notably on pesticides and animal welfare. The Commission also committed on 7 January to enhance the availability of CAP funding to farmers and rural communities under the proposed new MFF.
Despite these improvements, we continue to have significant concerns about the impact that the EU-Mercosur Agreement could have for our agricultural sector and for our rural economy. In line with the clear commitment in the Programme for Government, Ireland voted against the Agreement at the vote of EU Member States on 9 January. The consent of the European Parliament for conclusion of the Agreement is also required.
The Government will continue its engagement with the European Commission and with counterparts in EU Member States in the time ahead to ensure the full implementation of the commitments obtained from the Commission to address our concerns with the Agreement.