The European Commission has agreed a trade deal with south America after 25 years of negotiations.
The political agreement covers EU trade with Mercosur countries, Argentina, Bolivia, Brazil, Paraguay and Uruguay.
Ireland’s exports to Mercosur countries are worth €1.7 billion per year.
The agreement will phase out tariffs aiming to lower costs for businesses and prices for consumers.
The European Commission says the agreement will save EU companies €4 billion worth of export duties per year.
But “this is just the start of the process, not the end of the process”, warns the EU’s trade spokesperson, Olof Gill.
The agreement will still have to be ratified.
Ireland has expressed reservations about a Mercosur agreement.
The European Commission has “sole and exclusive competence to negotiate trade agreements” on behalf of EU member states, Olof Gill said.
Exactly what kind of ratification process will be required for the deal to come into force is still to be clarified by the European Commission.
Earlier this week a delegation from the Irish Farmers Association (IFA) protested outside the European Commission’s Ireland office in Dublin.
The IFA fears a Mercosur deal will undermine Irish farming.
“This deal is the height of hypocrisy. There will be no level playing field for EU farmers. Our markets will be undermined by cheap imports produced to lower standards. If this deal is concluded by the Commission, it will need to be approved by the EU Council of member states where there is still significant opposition to any deal being concluded,” said IFA President, Francie Gorman.
European Commissioner President, Ursula von der Leyen, said she had listened to farmers’ concerns and insisted the EU was putting in place measures to protect farmers.
“This agreement includes robust safeguards to protect your livelihoods. EU-Mercosur is the biggest agreement ever when it comes to the protection of EU food and drinks products.”
“In addition our European health and food standards remain untouchable”, von der Leyen added.
This agreement create opportunities and jobs, she insisted, speaking in Uruguay’s capital Montevideo this afternoon.