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LAST UPDATE | 6 hrs ago
THE SIGNING OF a trade deal between the EU and South American bloc Mercosur has been pushed back to January, after farmers staged a show of force against the pact outside a Brussels leaders’ summit.
Mercosur nations were notified of the delay by the European Commission, after EU plans to seal the pact this week were upended by heavyweights France and Italy.
The EU-Mercosur deal would create the world’s biggest free-trade area and help the 27-nation bloc to export more vehicles, machinery, wines and spirits to Latin America at a time of global trade tensions.
But Paris and Rome want more robust protections for their farmers, who fear being undercut by a flow of cheaper goods from agricultural giant Brazil and its neighbours.
Thousands of farmers flooded the Belgian capital yesterday – rolling around 1,000 honking tractors into the city – as the deal loomed large over the European leaders’ gathering.
The President of the Irish Farmers’ Association (IFA) and his 11-year-old son are among those attending the protest, and the Irish Cattle and Sheep Farmers Association (ICSA) has also sent over representatives.
IFA president Francie Gorman said it was important that he and other Irish farmers be in Brussels to “stand with our colleagues from across Europe to deliver a strong and united message”.
Speaking from Brussels, Gorman said that comments by the Taoiseach Micheál Martin which indicated that the Government would have to factor in the recent EU Commission decision on the Nitrates derogation into its thinking on Mercosur were totally unacceptable.
He called on the Taoiseach to clarify whether has struck a “backroom deal” with EU chief Ursula von der Leyen to back Mercosur in return or an extension of the nitrates derogation for dairy farmers.
The IFA has argued that farmers in sectors such as beef will be the ones who will suffer under the Mercosur deal.
“These are two separate and distinct issues,” Gorman said of the trade agreement and the nitrates derogation.
“For the Taoiseach to appear to link them is utterly unacceptable. There is a clear commitment on both issues in the Programme for Government,” Gorman said.
“The Taoiseach must now clarify if he has done some backroom deal with Ursula von der Leyen to back Mercosur and to sell out Ireland’s beef and poultry farmers.”
Having initially reacted with a now-or-never ultimatum to the Europeans, Brazil’s President Luiz Inacio Lula da Silva opened the door to delaying the deal’s signature to win over the holdouts.
Lula said Italian Prime Minister Giorgia Meloni had asked him for “patience” and indicated Rome would eventually be ready to sign.
Speaking after the Brussels summit, French President Emmanuel Macron said it was “too soon” to say if Paris would back the deal next month, saying fundamental changes to the text were needed.
But von der Leyen declared she was “confident” the bloc would approve the deal next month.
“This evening, we have achieved a breakthrough to pave the way for a successful completion of the Mercosur agreement in January,” the European Commission head said.
Key power Germany, as well as Spain and the Nordic countries, strongly support the Mercosur pact, eager to boost exports as Europe grapples with Chinese competition and a tariff-happy administration in the White House.
Von der Leyen had hoped to win final approval from member states in time to fly to Brazil for a signing ceremony tomorrow.
But with Paris, Rome, Hungary and Poland in opposition, the deal’s critics had enough clout within the European Council to shoot down the deal, were it to be put to a vote.
Italy and France both want tougher safeguard clauses, tighter import controls and more stringent standards for Mercosur producers.
Farmers say the deal would facilitate the entry into Europe of beef, sugar, rice, honey and soybeans produced by their less-regulated South American counterparts.
Tensions boiled over in Brussels yesterday after a mostly peaceful protest involving at least 7,000 farmers.
Rowdy scenes erupted outside the European Parliament, where protesters lit fires, set off fireworks and hurled potatoes, bottles and other objects at the police who responded with tear gas and water cannon.
Farmers are also incensed at EU plans to overhaul the 27-nation bloc’s huge farming subsidies, fearing less money will flow their way.
Police charged several times to clear the area. Minor scuffles ensued and at least a handful of people were arrested, an AFP reporter saw.
With reporting by Eoghan Dalton
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