MEP calls on von der Leyen to refrain from provisionally applying Mercosur deal

Ciaran Mullooly MEP
Ciaran Mullooly MEP

Midlands North West MEP Ciaran Mullooly is writing directly to European Commission president Ursula von der Leyen, demanding that the EU-Mercosur trade deal not be provisionally implemented while the European Court of Justice is examining its legality.

The letter, which has been signed by other MEPs, comes after the European Parliament voted to seek a formal opinion from the Court of Justice on whether the agreement - and the way it has been structured - complies with EU law.

The EU Mercosur Interim Trade Agreement has been negotiated with the South American countries which make up the Mercosur trading bloc - Brazil, Argentina, Paraguay and Uruguay.

The trade deal would see 99,000t of beef, mostly from Brazil, arrive into the EU on a reduced tariff of 7.5%.

In exchange, the EU will be able to export goods to the Mercosur countries at much more favourable tariffs, such as machinery and cars, but also agri-food produce such as olive oil and dairy.

MEP letter on Mercosur

Mullooly has also written to all Irish MEPs seeking their co-signature on the letter to president von der Leyen.

He has pointed out that the Programme for Government states that the Irish Government opposes the Mercosur deal in its current form.

"As Ireland opposed the Mercosur Trade Agreement on January 9, by doing this, they also formally opposed the provisional application of the agreement in advance of the EP [European Parliament] vote," Mullooly said.

The MEP warned that pressing ahead before the court delivers its ruling would represent a “serious breach of democratic trust”.

“Irish farmers and citizens deserve legal certainty. It would be unacceptable for the commission to push this deal into effect while the legality of the agreement is actively before the EU’s highest court," he added.

The EU-Mercosur agreement would create one of the largest free trade zones in the world, but has sparked deep concern in Ireland over its potential impact on the beef sector and food safety standards.

Mullooly has argued that the issue now transcends political debate about trade.

“This is about the rule of law. The European Parliament has exercised its Treaty right to seek clarification from the court," he continued.

"To provisionally apply the agreement in the meantime would undermine parliament, national parliaments, and the institutional balance laid down in the Treaties [of the EU].”

In his letter to von der Leyen, Mullooly also pointed to assurances previously given by commissioners that the trade agreement would not be provisionally applied before parliament has granted consent.

Mullooly’s co-signed letter to von der Leyen states that "during their parliamentary hearings, multiple commissioners have given assurances that they would not provisionally apply the trade agreements before the European Parliament has given its consent".

The letter continues: "Furthermore, during your presidency of the commission, assurances have been given in political guidelines, to not provisionally apply trade agreements before the European Parliament has given its consent.

“Those commitments must now be honoured. If the court is examining whether this agreement is legally sound, the only responsible course of action is to wait.”

The court’s opinion process is expected to take between 12 and 18 months.

Mercosur ratification

The European Commission can technically provisionally apply the terms of the Interim Trade Agreement with Mercosur countries, once one of the Mercosur countries has formally ratified it.

However, there has been a long standing institutional arrangement between the European Commission and Parliament that the commission would usually wait for the parliament's formal approval, before apply the terms of any deal.

That courtesy may be reconsidered given the delay that is expected in an opinion being returned from the European Courts of Justice.

A spokesperson for the Brazilian Ministry of Foreign Affairs told Agriland: "Ratification in the Mercosur countries may take place following approval by their respective legislative bodies.

"The ratification process is conducted independently within each Mercosur member state.

"Once a Mercosur country completes its ratification process, the agreements may enter into force bilaterally for that country and the EU, in case the EU decides to provisionally apply them.

"If it does not, the ITA [Interim Trade Agreement] will have to be approved by the European Parliament in order to enter into force."

The overall agreement though, the EU-Mercosur Partnership Agreement (EMPA), must also be submitted for ratification by the national parliaments of the EU countries.

"In the case of Brazil, the constitution establishes no fixed timeframe for the National Congress to approve an international agreement," the spokesperson added.

"Moreover, ratification is required for the agreement to enter into force, as Brazil does not provisionally apply international treaties."

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