A decision on whether the European Union would accept or reject the Mercosur trade deal is expected to be delayed until January, buying time to bring the Italian government around to getting the agreement over the line.
European Commission president Ursula von der Leyen told a summit of EU leaders that a vote on the contentious South American trade agreement would be pushed back.
Minister of State for Europe Thomas Byrne said it was his understanding the commission president told national leaders the decisive vote on the deal would be pushed from this week to January.
Frantic negotiations are continuing at EU level to muster a majority of governments behind the proposed trade deal with South American countries. A crunch vote to accept or reject the deal had been tipped for this week, which would have pushed the Government to pick a side.
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Earlier Taoiseach Micheál Martin said what way the Government voted had to be seen “in the round” and take account of separate leeway the State was recently given on EU nitrates rules.
The Republic is among a group of EU member states, including France, Italy and Poland, that have expressed concerns about the deal, over fears it could hurt beef farmers.
The European Commission, the EU’s powerful executive branch, which negotiated the agreement, has put significant effort into securing the support of the French and Italian governments for the trade deal.
Diplomatic efforts have narrowed on Rome as the most likely swing vote. The support of Italian prime minister Giorgia Meloni would deliver a sufficient majority to approve the deal, over the objections of Paris.
The Mercosur agreement would open up a huge South American market for European exports by lowering trade barriers between the EU and Brazil, Argentina, Uruguay and Paraguay.
Extra safeguards to protect European beef farmers from being undercut by cheaper South American imports had made the proposed deal “a much stronger agreement” than it was a year ago, Mr Martin said.
Speaking on Friday in Brussels, the Fianna Fáil leader said the Republic was continuing to work with “like-minded countries” to improve the proposed deal.
Any decision had to be seen “in the round” and the State needed to be conscious that the EU had recently agreed to extend a nitrates derogation afforded to Irish dairy farmers, he said.
An extension of the Republic’s long-standing exemption, allowing Irish farmers to spread higher levels of manure, had been a key demand of farming organisations.
[ Mercosur decision may be delayed until January, Thomas Byrne saysOpens in new window ]
The extra three-year leeway the EU gave Irish dairy farmers on rules protecting waterways from excess agricultural run-off and pollution had followed “very tough” negotiations, Mr Martin said.
The exemption the State secured from the European Commission on nitrates “should not be underestimated in terms of the impact on agriculture,” Mr Martin said.
Separate talks were ongoing about the amount of money that will be set aside for the Common Agricultural Policy in the EU’s next seven-year budget, the Taoiseach said.
“As it’s currently drafted, it’s not satisfactory from our point of view, or from Irish farmers, in terms of the amount and the size of that budget, we do need to increase that,” Mr Martin said.
It has been reported Ms Meloni is also seeking concessions in EU budget negotiations, in exchange for her support on the Mercosur deal.
Europe is divided over the Mercosur deal - with Ireland in the middle
While Irish beef farmers have called for the Government to vote against the trade accord, it would likely benefit other Irish industries, such as dairy, whiskey and pharma exports.
Ms von der Leyen had hoped to travel to Brazil this Saturday to sign the deal. However, requests for a delay by France and Italy has pushed a vote back by several weeks.
French president Emmanuel Macron said his government would not support the Mercosur deal at present. “We believe that the deal is not right, and that this agreement cannot be signed,” he said.
The leaders of the 27 EU states discussed the latest state-of-play during a summit in Brussels on Thursday.
The Government wanted further assurances that agricultural produce coming from South America would meet strict EU food safety standards, Mr Martin said.
In a bid to put pressure on wavering European countries, Brazilian president Luiz Inacio Lula da Silva indicated the time was now or never to sign the agreement.
Ms Meloni asked for a small bit for more time to allay the concerns of Italian farmers, teeing up a vote next month and signaling Rome would be prepared to back the deal after receiving some final assurances.
Italy’s support would mean the Mercosur deal could be approved, even if France, Poland, Hungary, Austria and Ireland voted against the trade pact’s adoption.
Voting against the deal would damage Ireland’s standing within the EU, particularly if the trade agreement is rejected. A weighted majority of the EU’s 27 states need to vote in favour of the agreement to approve it.
