January 28, 2014

The EU and the Mercosur Group, which comprises of Brazil, Argentina, Paraguay and Venezuela, are currently negotiating a new trade agreement, which could open the European beef market to the South American nations.

Brussels is making it clear that any future trade agreement with the Mercosur group will have to comply with the existing animal health or food safety regulations within the EU.

Meanwhile, the spokesman from the European Commission was quoted in Agriland as saying, "It should also be pointed out that any trade deal arrived at will provide for the movement of goods and services in both directions."

The possibility that Brazilian beef could secure its way to the EU as a result of the trade deal has sparked concerns in exporters such as Ireland. "If this was to happen, the impact on Irish beef farmers and processing companies could be dramatic. We fully intend to bring this matter to the attention of the Commission in Brussels this week," said the Irish Farmers' Association.

As the Mercosur's first trading partner, EU accounts for 20% of the group's total trade. EU's exports to the region have steadily increased over the past five years, from €28 billion (US$38.28 billion) in 2007 to €57 billion (US$77.94 billion) in 2012.

Accounting for 3% of EU's total trade, Mercosur is the eighth largest trading partner for the EU, with agricultural products (40% of total exports) and raw materials (28%) being the biggest exports to the EU; while the EU exports mostly manufactured products, machinery and transport equipment (45% of total exports) as well as chemicals (22% of total exports) to Mercosur.