The Government is expected to decide whether or not to support the EU-Mercosur trade deal, which is set to be ratified at the European Council tomorrow.
If approved, the Mercosur agreement would create the world’s biggest free-trade zone and increase EU exports to Mercosur countries – Argentina, Brazil, Paraguay and Uruguay – by up to 39% at a value of €49 billion to the European economy.
This would expand EU’s trading partners at a time of volatility in world trade in the face of increased tariffs.
However, the EU decision on the deal was delayed in December in the face of opposition from France, Italy, Poland and Ireland.
Opponents cite the potential to massively distort key agricultural markets if EU farmers had to compete with lower-cost South American beef.
Minister of State Michael Healy-Rae said negotiations are at a sensitive stage
Several Independent ministers and TDs within the coalition want the Government to continue to oppose the agreement.
They believe the deal is a red line issue.
Minister of State at the Department of Agriculture Michael Healy-Rae is understood to have indicated to colleagues at a private meeting yesterday that any change in the Government’s position would put him at odds with the coalition.
Officially, he said negotiations are at a sensitive stage.
However, Mr Healy-Rae is planning to attend a major farmers protest against the EU-Mercosur trade deal in Athlone on Saturday.
The Mercosur trade deal: All you need to know
Independent TD Michael Lowry and Minister of State Marian Harkin are also said to have adopted entrenched positions.
Senior government figures insist that the final decision will be taken collectively.
They point to the fact that the ship will have sailed on this fraught issue by tomorrow and voting against it will not alter that reality.