Oireachtas Joint and Select Committees

Wednesday, 18 November 2015

Select Committee on Foreign Affairs and Trade

Economic Partnership Agreements: Motions

2:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael) | Oireachtas source

Ordinarily, I would be very supportive of proposals of this nature and I wish to be supportive but I am a little bit at sea as to the detail. The Minister of State is probably relaying what is in the general agreement and we may not find out the detail until a later stage. We have had one bad experience in relation to a similar agreement in the past, namely, the termination of the sugar regime in Europe. The selling point at the time was that sugar would become cheaper for consumers all over Europe and it would be hugely beneficial to the individual farmers in Africa to whom the Minister of State referred, rightly so if that were to happen, but that did not happen. In fact, the reverse happened. It was of huge benefit to multinational corporations who seized the opportunity not only to replace the poor indigenous farmers in African and other countries but also to improve and enhance their position in the European sugar market. I do not want such an outcome to be hidden somewhere in the fuzz that goes along with agreements.

I am also aware of the large European dairy companies that have made major acquisitions which will be of huge benefit to them in the context of this particular agreement. They readily admit that African producers will not be able to compete with them and it was never intended that they should compete with them. Problems will arise.

Another issue to which we referred in the past is the concept of trade for aid. Ireland is one of the very few countries which does not employ a policy of aid for trade. Rightly so, but as you well know, Mr. Chairman, we have visited certain African countries where there was ample evidence of aid only for trade to the detriment of the poorer countries. I would like to see much more detail. I would like to know, for example, to what extent engagement took place with the small producers in the African countries with a view to asking them how the agreement would affect them or how beneficial it would be for them, if they expect to enhance their trade and would it be trade with no strings attached. I would also like to know the extent, if any, to which the whole concept of aid for trade was advanced in the course of the preparation of the agreements. In addition, I would like to know the extent, for example, to which producers in this country and across Europe – the ordinary small producers, not the multinational corporations – are likely to be affected or are being affected in the context of the agreements.

I am fully in favour of removing barriers to trade. We talked about the Transatlantic Trade and Investment Partnership, TTIP, and other such matters in the past. There are benefits from it accruing to the poorer nations and all participants. However, I am very concerned about the extent of the detail that may be wrapped up in the context of the two agreements which spread very wide. Two Continents are covered by them, and there will be an impact on both Continents. I am concerned that some of those issues might be of negative content from the point of view of first, the people for whom the help is intended, and second, the producers in this country, for example, the poultry sector, and the impact it might have on the agrifood sector.

I wish to be supportive. The concept is a good one but I am deeply suspicious. I have many bad memories. I was one of the very few people in a previous incarnation of this committee who asked the question about the doubtful benefits of the cessation of the sugar regime in Europe. Deputy Denis Naughten, who was spokesperson in a different incarnation at the time, also raised concerns. In fact, the implications were not recognised by the people who were directly affected, either in this country or in the countries for whom the intention was to assist.

I do not wish to be negative but I am happy about the agreement until I see a much greater level of detail trotted out. I would love to meet and greet some of those people such as FrieselandCampina, Danone and other companies that have launched major investment programmes throughout Africa and made major acquisitions throughout Europe recently and continue to do so. That is all I wish to say at this stage. I will not read the list into the record but I will do so at another point.

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