Brendan Smith (Cavan-Monaghan, Fianna Fail) | Oireachtas source

I thank Mr. Redmond for this contribution, as he has outlined very clearly the importance of US investment in this country and the creation of much-needed employment. That has been a feature of US investment for many decades, and I am glad Mr. Redmond also mentioned the major contribution of Irish companies to employment in the United States, as it is often forgotten. Great credit is due to the companies employing approximately 130,000 people in the US. Some of these are brands for Ireland, particularly in the food industry.

Mr. Redmond mentioned that the US and the EU account for half the world's economic output. I read recently that a third of global trade is represented by the EU and US, so any trade agreement is of major significance, not just for those two trading blocs but for the entire world. Naturally, we want proper standards achieved, with the benefit of trade deals accruing from extra business and the creation of employment.

The World Trade Organization seems to have been sidelined to a certain extent. President Barroso has been very keen to advance the Mercosur deal and if agreement is reached, there will be very big down sides for Ireland, particularly the food area mentioned by the Chairman. There may be one or two sectors in the food industry that would welcome the Mercosur deal, such as the drinks industry, which has great potential to export to South America. Is there an impetus to complete the Mercosur deal before this European Commission's term of office expires before the end of the year?

I have a concern about one element of TTIP, the clause dealing with investor to state dispute settlement. My understanding is that the provision would allow investors to challenge countries in international courts. If that is correct and it is part of an agreement, it would curtail a government's ability to respond to some issues. For example, climate change is not addressed enough in any trade deal over decades, as far as I can see, and countries are sidelined in some of the decision-making processes. A country may wish to introduce new climate change policies, strengthen energy efficiency standards and provide better support for renewable energy in general. A greater reliance on fossil fuels runs counter to the ideals of the Intergovernmental Panel on Climate Change, and any of us in Parliament should uphold the primacy of governments being able to make their own decisions and retain competencies to the greatest extent possible. If states do not retain competence and policy flexibility to regulate the exploration and exploitation of their own natural resources, we will be moving to a very difficult area that may not be beneficial, particularly for less developed countries. We must be careful of that issue, although we support a deal that would be balanced, protect workers' rights and offer adequate support for the environment. It should help to improve and advance human rights throughout the world. These are basic factors that should form an important part in any final agreement.