Hansen put through paces on Mercosur at Oireachtas committee
European Commissioner for Agriculture Christophe Hansen was quizzed by members of the Oireachtas Committee on European Affairs on the EU-Mercosur Trade Agreement today (Tuesday, February 3).
Commissioner Hansen, along with his commission colleague Piotr Serafin, European Commissioner for Budgets, were in Ireland today as part of engagement with government, politicians and stakeholders (including farm organisations) on the EU budget 2028-2034 and, as part of that, the Common Agricultural Policy (CAP) post-2027.
However, the EU Mercosur Trade Agreement took up a large part of the discussions, with members of both the European affairs committee and the agriculture and food committee, which was invited to participate, asking questions for both commissioners, but most of which were directed towards Commissioner Hansen.
Addressing concerns raised from members of both committees, Commissioner Hansen would not be drawn on whether the European Commission would move ahead and provisionally apply the EU-Mercosur interim trade agreement before it is approved by the European Parliament.
"The mandate given by the [Council of the EU] is very clear that the commission has the possibility to go for the provisional application," the commissioner said.
"So far, the decision has not been taken, and this will be done together with colleagues," he added.
Trade tensions
Commissioner Hansen also referenced trade tensions with the US and China, in defence of having trade agreements such as Mercosur based on "common rules".
"I think it is very important that we are looking into developing markets... And when we look at the current trade flows, do we have problems with Canada? I think the answer will be no. Do we have problems with Japan? The answer, again, will be no. Do we have problems with the US currently? Yes, we do. Do we have problems with China? Yes, we do," he said.
"What is the difference between those? Of course, with Canada and Japan, we have a trade agreement, a reliable partnership, where we have agreed on common rules, on common safeguards, on common standards. And this is the most stable relationship that you can have," the commissioner added.
"On the other side, you are always exposed to disturbances, or on the decision, sometimes, of a single man that is trying to hit us with tariffs, for example.
"And I think this is why, in this very turbulent geopolitical times, it is of utmost importance to have not all the eggs in the same basket, firstly; and secondly, negotiate common rules. And that is what trade agreements are about," he said.
Safeguard mechanism
On the safeguard mechanism that has been proposed to go hand-in-hand with the trade deal to protect sensitive sectors, Commissioner Hansen suggested that the reactions of some political leaders within the Mercosur countries of Brazil, Argentina, Paraguay and Uruguay show that the safeguards will be effective.
"Now with what is on the table, if you will see that, in one single [EU] member state, the price drops by only 5%, and at the same time you see that the imports have gone up by 5%, [an] investigation will be launched, if the member states wishes so, by the European Commission, and we can quickly act and close the market for that," he said.
"This is something unprecedented. And when you look at the reactions [of] President [of Argentina Javier] Milei, for example, and other political leaders, they don't like that at all, because they know that this safeguard clause is going to bite," Commissioner Hansen added.
The commissioner also moved to reassure the committee over concerns about importing beef produced in ways that are illegal in the EU.
"The Brazilians can produce for their population whatever they want, or they can produce whatever they want for the Chinese, if they want to accept it.
"But for us, it is very important. We have very high standards. It's not allowed to use growth hormones, for example. So, for us, it must be clear that these products cannot come in if it doesn't comply to our standards," he said.
Labelling
On country of origin labelling, the commissioner told the committee that it is an area the EU has to be "bolder" on.
"A steak, you will know if it is an Argentinian steak or an Irish steak. But do you know the same when you buy your chicken nuggets, for example? Probably not.
"And I think there we have to be bolder on this origin labelling... I think that is something where we need to work on," he said.
He also drew attention to the provision in the Mercosur deal for EU protected geographic indications (PGIs) to be recognised in Mercosur countries, where currently they are not.
"When you go to the ground, you will see counterfeited Italian parmesan cheese, but as well Irish spirits. And I think that is why these agreements are so important, because they are based on rules and not just about the impulsion of some single politician," Commissioner Hansen said.
