With the expected publication of the final text of the Mercosur deal this coming week, the process of moving from an agreement to implementation will begin.
Over six months have passed since the agreement was sealed for the second time last December in Uruguay.
Since then, it has been going through the administrative process of translating into member state languages and legal scrubbing.
Now it is ready for the incoming Danish presidency of the European Union over the next six months to give it the political push necessary.
Denmark is a known supporter of the Mercosur trade deal and will be well disposed to putting the weight of the presidency behind it.
There is still member state opposition to the deal, led by France, with Hungary and Poland inclined against it, while Ireland has generally kept a low profile on the issue.
Strong opposition
The farming lobby in Ireland and across the EU has strongly opposed the deal since negations began in 1999. For much of that time, European farmers could point to an individual animal traceability system and complete absence of hormone use in cattle.
It is now approaching 20 years since the Irish Farmers Journal and the Irish Farmers' Association (IFA) exposed that it wasn’t the same in Brazil.
There has also been the issue of rainforest clearance in Brazil to bring more land into production. This increased rapidly after the original Mercosur deal was agreed in 2019, having been in decline for several years previously.
That expansion ceased with the election of president Luiz Inácio Lula da Silva in Brazil in 2023 and rainforest clearance has resumed its downward trend since.
Brazil is also in the process of introducing individual animal traceability, though it will take some time, while Uruguay has had full traceability since 2006.
While there is no doubt that South American countries have been on an improving trajectory, EU farmers bemoan the exceptionally high standards they are held to on animal welfare and environmental protection which are unmatched anywhere.
It is a frequent pushback outside the EU that farmers in Europe shouldn’t be opposing the standards of other countries, rather they should challenge the standards imposed by the EU.
That is something of an academic debating point because EU farmers have to comply with EU laws whether they approve of them or not.
Approval process
The first step in the approval process is securing a majority support in the European Union Council of Ministers.
France is the largest country that so far is strongly opposed to the deal, but it will come under pressure in the days ahead to at least acquiesce with the deal - ie not vote against it.
If the qualified majority is secured in support of ratification, the next issue is how much of the deal will require individual member state approval.
If and when these hurdles are cleared, the process moves into the European Parliament, where debate is expected to take the remainder of this year and a good part of 2026. If parliament approves, the deal could come into effect provisionally either late next year or early 2027.
Comment – taking one for the team
While the view in Brussels is that the Mercosur deal will be ratified, it is not absolutely certain.
However, the reality for beef producers is that they and poultry producers are the only sectors in the entire economy that don’t benefit from the deal - it is slightly positive for dairy and broadly neutral for pigmeat.
The wider economy is forecast to benefit significantly, particularly pharma and technology, which is significant for Ireland.
The deal basically requires beef and poultry producers to take one for the team, notwithstanding various safeguards that are in place. The process is starting that will decide whether that is the case.
Read more
EU beef imports from Mercosur at 16-year high
Mercosur deal approval process about to start
Mercosur mirror clauses only a 'mirage' - McNamara
With the expected publication of the final text of the Mercosur deal this coming week, the process of moving from an agreement to implementation will begin.
Over six months have passed since the agreement was sealed for the second time last December in Uruguay.
Since then, it has been going through the administrative process of translating into member state languages and legal scrubbing.
Now it is ready for the incoming Danish presidency of the European Union over the next six months to give it the political push necessary.
Denmark is a known supporter of the Mercosur trade deal and will be well disposed to putting the weight of the presidency behind it.
There is still member state opposition to the deal, led by France, with Hungary and Poland inclined against it, while Ireland has generally kept a low profile on the issue.
Strong opposition
The farming lobby in Ireland and across the EU has strongly opposed the deal since negations began in 1999. For much of that time, European farmers could point to an individual animal traceability system and complete absence of hormone use in cattle.
It is now approaching 20 years since the Irish Farmers Journal and the Irish Farmers' Association (IFA) exposed that it wasn’t the same in Brazil.
There has also been the issue of rainforest clearance in Brazil to bring more land into production. This increased rapidly after the original Mercosur deal was agreed in 2019, having been in decline for several years previously.
That expansion ceased with the election of president Luiz Inácio Lula da Silva in Brazil in 2023 and rainforest clearance has resumed its downward trend since.
Brazil is also in the process of introducing individual animal traceability, though it will take some time, while Uruguay has had full traceability since 2006.
While there is no doubt that South American countries have been on an improving trajectory, EU farmers bemoan the exceptionally high standards they are held to on animal welfare and environmental protection which are unmatched anywhere.
It is a frequent pushback outside the EU that farmers in Europe shouldn’t be opposing the standards of other countries, rather they should challenge the standards imposed by the EU.
That is something of an academic debating point because EU farmers have to comply with EU laws whether they approve of them or not.
Approval process
The first step in the approval process is securing a majority support in the European Union Council of Ministers.
France is the largest country that so far is strongly opposed to the deal, but it will come under pressure in the days ahead to at least acquiesce with the deal - ie not vote against it.
If the qualified majority is secured in support of ratification, the next issue is how much of the deal will require individual member state approval.
If and when these hurdles are cleared, the process moves into the European Parliament, where debate is expected to take the remainder of this year and a good part of 2026. If parliament approves, the deal could come into effect provisionally either late next year or early 2027.
Comment – taking one for the team
While the view in Brussels is that the Mercosur deal will be ratified, it is not absolutely certain.
However, the reality for beef producers is that they and poultry producers are the only sectors in the entire economy that don’t benefit from the deal - it is slightly positive for dairy and broadly neutral for pigmeat.
The wider economy is forecast to benefit significantly, particularly pharma and technology, which is significant for Ireland.
The deal basically requires beef and poultry producers to take one for the team, notwithstanding various safeguards that are in place. The process is starting that will decide whether that is the case.
Read more
EU beef imports from Mercosur at 16-year high
Mercosur deal approval process about to start
Mercosur mirror clauses only a 'mirage' - McNamara
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