Fitzmaurice Bombshell: EU Trade Commissioner admits Irish beef prices could drop 45 per cent in 5 years

Fitzmaurice Bombshell: EU Trade Commissioner admits Irish beef prices could drop 45 per cent in 5 years and safeguard would still not apply under Mercosur deal

The European Union’s trade commissioner has acknowledged that Irish beef prices could fall by as much as 45 per cent in the next five years and still, Brussels would not have to trigger safety mechanisms against South American imports under the proposed Mercosur trade agreement.

The admission  was made by Maroš Šefčovič following questions by Michael Fitzmaurice TD, that beef prices would be allowed to fall by nine per cent each year under the proposed Mercosur trade agreement before protective measures could be triggered. The admission has been described as a “bombshell” by Michael FItzmaurice who says the lack of a protective handbrake leaves Irish producers dangerously exposed.

Under the terms of the draft deal, beef from Mercosur states — Brazil, Argentina, Paraguay and Uruguay — would be granted significant tariff-free access to the EU market. The commission has previously insisted that safeguard clauses exist to protect European farmers in the event of market disruption.

Michael Fitzmaurice TD said "The commissioner admitted that the Mercosur deal allows beef prices to fall by up to 10% per cent annually before safeguards kick in."

"In that case we could see a 9% drop in beef prices for the next five years and the EU would do nothing about it - Under this trade deal the price of beef could drop by almost half while South American beef would be allowed to flood the market - it is confirmation that this deal would decimate the Irish beef industry"

"It's utterly reckless to think this would be anything other than a disaster for farmers” Fitzmaurice said. 

Speaking after the meeting, Independent Ireland's Midlands North-West MEP Ciaran Mullooly said the remarks amounted to the “final nail in the coffin” for the controversial deal.

“Irish farmers are now being told that prices can collapse year-on-year before any so-called safety net is applied — that is not protection, it is surrender,” the MEP said.

The Mercosur agreement, which would grant tariff-free beef access to EU markets from South America, has long faced resistance by Independent Ireland and Fitzmaurice has called on the Government to "Wake up before it's too late, because if this deal goes through farmers will not forgive Fianna Fail and Fine Gael, the industry will be decimated and that will be on them"