Factsheet: EU-Mercosur Partnership Agreement - Opening a wealth of opportunities for people in Ireland

The EU-Mercosur Partnership Agreement means that:

• Irish firms and small businesses will find it much easier to do business in Mercosur countries
• Irish companies can offer services more easily and more cheaply
• Irish producers (of industrial and food products) and farmers can export more
• Irish delicacies will sell more and at premium prices

Trade is important for Ireland’s economy

• 796,000 jobs are supported by Irish and EU exports to the world*
• That is 1 out of 3 jobs

Ireland and Mercosur have a close trade relationship

• Total trade between Ireland and Mercosur: €3.9 billion**

Lower to zero tariffs, more and cheaper exports

The agreement will eliminate tariffs on 91% of all products, benefitting virtually all Irish exports.

*Includes Irish jobs supported by exports to countries outside the EU and jobs linked to exports from other EU countries to the world.

**Trade in goods (2024) and services (2023).

New opportunities for Irish farmers

Currently agri-food products, a sector where Ireland is very competitive, represent only 5% of the EU’s total exports to Mercosur, due to the prohibitive tariffs and other restrictions currently in place in Mercosur countries.

As of now, Mercosur tariffs of up to 55% on EU agri-food products essentially close the market for EU products.

The EU-Mercosur deal will remove these tariffs, helping Irish farmers increase their exports to this region.  

Irish agri-food exports to Mercosur in numbers:

Protecting distinctive Irish food and drink products

The EU-Mercosur deal will protect 344 EU food and drink products from imitation in Mercosur countries. Such protection helps make these products more distinct. This will help to sell more Irish products and at more premium prices, as the selling price of products protected by a Geographical Indication is between 2 and 3 times higher than that of regular products. 

The EU-Mercosur Agreement will protect 2 Irish Geographical Indications (GIs):

• Irish cream (Liqueur)
• Irish Whiskey (Spirit drinks)

Supporting Irish farmers in case of market disturbances

Important measures will be in place to protect the interests of Irish farmers.

A maximum limit (quota) will be put on the amount of agri-food products imported from Mercosur that benefit from lower tariffs:

• 99,000 tonnes for beef: this corresponds to 1.5% of the EU’s total production;
• 25,000 tonnes of pigmeat: 0.1% of total EU production, and;
• 180,000 tonnes for poultry: 1.3% of total EU production per year.

The deal includes a safeguard clause to protect EU farmers against any sudden increase in imports. 

This is the first time that such a measure is included in an EU trade agreement, even for products already subject to a quota.   

In addition, the Commission stands ready to promptly and strongly assist farmers in the unlikely event of significant market disturbance linked to the agreement.  

High EU standards protecting EU citizens will in no way be compromised: all Mercosur products must comply with the EU’s strict food safety regulations. 

Strong sustainability commitments apply equally to producers on both sides.

Easier and cheaper ways to provide services in Mercosur

Ireland and Mercosur export many services to each other.

Irish exports of services to Mercosur are worth €1.8 billion a year.  

In 2023, the main exports of services consisted of: 

• Business: €758 million
• Telecommunications: €200 million
• Financial: €13 million

The EU-Mercosur agreement will further open the Mercosur services market in sectors such as:

• Financial
• Postal & courier
• Telecommunications
• Transport
• Digital trade
• Environmental

Helping Ireland’s small businesses export more to Mercosur

97% of all Irish exporters are small companies. These companies often find it difficult to export outside the EU, as it comes with extra costs and administrative procedures.

The EU-Mercosur deal will change that by offering more opportunities for small businesses. It will:

• Reduce costs by eliminating tariffs and simplifying customs procedures
• Alleviate the administrative burden by making it easier to certify products for local sale
• Offer a better chance to bid for public contracts by improving access to information
• Provide them with extra help through dedicated Small Business Coordinators
• Open new possibilities through easily accessible online information about doing business in Mercosur countries