Chambers Ireland and ICC Ireland say pact offers timely opportunities for exporters as firms look to diversify and manage rising costs.
The provisional entry into force of the EU‑Mercosur trade agreement on Friday opens a major new market for Irish companies, providing what business leaders describe as a timely boost as operating costs continue to rise.
Commenting on the agreement, Ian Talbot, chief executive of Chambers Ireland and International Chamber of Commerce (ICC) Ireland, said the deal represents a significant commercial opportunity for Irish exporters and importers, many of whom are already preparing to diversify beyond traditional markets.
“We now need a strong focus on engagement with businesses, especially SMEs, to fully realise what the agreement offers”
The scale of the opportunity should not be underestimated, Talbot said, noting that the agreement comes at a point when companies are under pressure from higher costs across energy, labour and inputs.
He added that expanded trade flows could also benefit consumers by widening choice and strengthening competition over time, contributing to more competitive pricing and helping to address cost-of-living pressures.
Exposure to dynamic economies
The EU‑Mercosur agreement covers trade with four large South American economies: Brazil, Argentina, Uruguay and Paraguay. Together, they represent a fast‑growing market with increasing demand for high‑quality imported goods and services.
“These are substantial, dynamic economies with increasing demand for high quality goods and services,” Talbot said. “This favours our domestic businesses. For sectors such as agri food, manufacturing, pharmaceuticals, engineering, ICT and professional services, reducing tariffs and regulatory barriers at this scale will make a real, practical difference on the ground.”
Beyond immediate access to new customers, Talbot said the agreement should be viewed through the lens of long‑term competitiveness. Trade deals, he noted, have a direct impact on companies’ ability to invest, expand and create sustainable employment.
“Trade agreements directly affect the ability of businesses to compete, invest and create jobs. The EU-Mercosur agreement will also help level the playing field for Irish exporters who will now be able to diversify even more beyond traditional markets. Given current geopolitical stability, this is a very welcome development.”
However, he stressed that the success of the agreement will depend on how effectively it is implemented and how well businesses are supported in navigating the new framework.
“Getting the deal over the line is only the first step,” said Talbot. “We now need a strong focus on engagement with businesses, especially SMEs, to fully realise what the agreement offers.
“We expect the EU to monitor the impact and implement safeguards where appropriate to protect the limited number of sectors which perceive themselves to be vulnerable. With the right follow through, this agreement can translate into real commercial outcomes for companies in all sectors across the country.”
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