The Irish government has warned that the proposed EU-Mercosur trade agreement could reduce the value of the national beef sector by as much as €55 million annually, according to findings from an independent impact assessment.
Responding to a parliamentary question from Sinn Féin TD Darren O’Rourke, Agriculture Minister Martin Heydon detailed the findings of a 2021 Economic and Sustainability Impact Assessment (ESIA).
The report estimates that beef imports from Mercosur member states – Argentina, Brazil, Paraguay, and Uruguay – into the European Union would rise by approximately 53,000 tonnes under the deal.
The assessment suggests that if these additional imports consist primarily of high-end cuts, producer returns in Ireland could fall by an estimated 2%. Based on export data at the time of the study’s publication, this represents a potential contraction in output value ranging from €44 million to €55 million for a sector currently valued at over €3 billion.
Minister Heydon reiterated the Irish government’s opposition to the agreement in its current form, citing a “twin-track approach” of engaging with like-minded EU member states to voice concerns regarding market sensitivity.
He emphasised that while global supply chains already see 200,000 tonnes of Mercosur beef enter Europe at high tariff rates, the proposed deal would grant a preferential tariff rate to an additional 99,000 tonnes.
A central point of contention remains the disparity in environmental and production regulations between Europe and South America. Minister Heydon noted that Irish farmers have adopted increasingly stringent environmental sustainability standards, which has increased the cost of production while positioning Irish beef in higher-value markets.
However, the Minister argued that granting market access to beef produced under lower environmental standards would be “inherently unfair” to domestic producers who meet rigorous EU standards and undercut their business.
On the issue of food safety, the Minister maintained that EU sanitary and phytosanitary (SPS) standards are “non-negotiable” and said they will not be lowered for Mercosur imports regarding hormones and other controversies. He confirmed that he has directly lobbied European Commissioner Olivér Várhelyi for increased inspections at border control posts and in third countries following recent recalls of Brazilian beef.
Notably, earlier this month, Brazilian beef containing banned hormones entered the Irish food chain and was subject to a recall order by the Food Safety Authority of Ireland, which the Irish Farmers’ Association described as “a wake-up call for the Government.”
“This shows that the undertaking from Brazil about the processes they have in place are completely flawed and wholly ineffective,” said IFA President Francie Gorman at the time.
After a quarter of a century of negotiations, a majority of EU states approved the EU-Mercosur deal on January 9th, 2026, and officially signed it in Asuncion on January 17th.
Ireland was among the minority opposing the deal, concerned about the impact on its beef industry and lower environmental standards, though the country could not form a blocking minority.
To ease tensions around the deal, the European Commission proposed a CAP support fund to help farmers affected by South American imports.
The deal is split into two parts: a trade agreement requiring EU-level consent and a broader partnership requiring approval from every national parliament. The latter part has yet to take place.
Furthermore, on January 21st, the European Parliament voted 334 to 324 to refer the deal to the European Court of Justice for a legal review. This referral pauses the process, which experts say could delay the deal by one to two years while the court deliberates.