EU trade measures not aimed at Mercosur deal, Irish envoy says
Martin Gallagher
Wenderson Araujo/Valor
Amid criticism sparked by the European Union’s recent trade measures targeting Brazilian products, Irish Ambassador Martin Gallagher rejected the notion that the decisions were intended to undermine or limit the implementation of the provisional Mercosur-European Union trade agreement. In an interview with Valor, Gallagher said measures affecting beef and steel, for example, were adopted outside the scope of the trade pact and were “in no way” intended to weaken it. Ireland assumed the rotating presidency of the Council of the European Union on July 1 for a six-month term.
“I believe the European Commission is implementing the agreement on a provisional basis, and the objective is to maximize the agreement’s potential for both sides. These measures are not directly linked to the agreement.”
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Shortly after the provisional application of the Mercosur-EU agreement began in early May, the EU removed Brazil from the list of countries authorized to export beef to the bloc, arguing that the country had failed to comply with rules governing the use of antimicrobials in livestock production.
More recently, the European Union also imposed new quantitative restrictions and raised out-of-quota tariffs on steel products. As a result, Brazil and the other Mercosur countries have been able to export smaller volumes of tariff-free steel to the EU since July 1, just two months after the free-trade agreement was signed.
Gallagher acknowledged that the measures could be perceived as a negative signal at the outset of the agreement’s implementation but stressed that, while the European Union is a political project, its decisions are based on technical assessments. He said the bloc’s role is to establish standards, particularly in areas such as food safety and quality. In that context, he noted that the requirements imposed on Brazilian beef are the same as those applied to beef imports from any other country.
According to Gallagher, European authorities had been in contact with the Brazilian government for some time, and the decision to restrict Brazilian beef imports was taken during a previously scheduled meeting based on technical criteria. “So it was not something done deliberately to target Brazilian beef. And I know discussions have already begun between the European and Brazilian authorities to seek a solution. I hope that will be possible in the near future,” he said.
Regarding steel, the ambassador said the measures reflect the European Union’s response to excess capacity in the global market. He said the bloc considers steel a strategic industry for both manufacturing and defense, making its protection a priority. “Unfortunately, these measures have to be implemented, but they are being taken because of global overcapacity,” he said.
The diplomat added that the measures are being implemented in accordance with the rules of the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT), in consultation with other members of the international community and through existing institutional mechanisms. “And from what I understand, for countries or blocs that have a free-trade agreement with Europe, the implications will not be as significant as they would be for those that do not,” he added.
Gallagher said that during Ireland’s presidency, he will work to ensure that the full benefits of the Mercosur-EU trade agreement are realized and that businesses maximize the opportunities it creates.
In his view, part of the resistance to the agreement had been driven by “fear of the unknown.” With its provisional application now underway, it will be possible to assess its practical effects while the European courts have yet to issue a final ruling on the agreement, he said. According to Gallagher, studies conducted over time indicate that the agreement’s benefits are likely to be distributed relatively evenly among all participants.
He acknowledged that some industries, particularly outside the European Union, are concerned about the bureaucracy associated with complying with the bloc’s regulatory requirements, given that the EU operates through a highly rules-based system. “But I believe that is the job of national governments: to support their countries and industries to ensure they can meet the necessary standards,” he said.
The ambassador also said that despite the rise of protectionist policies globally, the European Union will continue pursuing free-trade agreements around the world because it believes more open economies generate mutual benefits. “Protectionism will not be good for Europe because Europe is an exporting continent.”
During Ireland’s presidency, one of the bloc’s priorities will be to deepen trade relations with countries such as Brazil, he said. Gallagher noted that Brazilian exports to the European Union rose 13% in the first six months of this year and that the EU’s 27 member states collectively represent the largest source of foreign direct investment in Brazil, ahead of the United States and China.
On the critical minerals market, the ambassador said the European Union views Brazil as a strategic partner rather than merely a supplier of raw materials. “We see Brazil as a country with which we can build partnerships across the entire value chain for the critical elements and minerals we will need in the future,” he said.
He noted that European Commissioner for International Partnerships Jozef Síkela recently visited Brazil and announced four projects related to critical minerals.
Gallagher was also asked about the UK and the possibility of Brexit eventually being reversed after a series of political and economic crises. In his view, if the British public decided to rejoin the European Union, the bloc would welcome that decision.
He emphasized, however, that such a choice belongs exclusively to the British people. According to Gallagher, Brexit had profound consequences for Ireland because of its shared border with Northern Ireland, but the country prepared for the scenario and was able to mitigate its effects. Even so, he said, the goal remains to strengthen ties with the UK. “We would like to see the closest possible relationship between the EU and the UK.”