Ms Mary Barrett:

I will respond first to Deputy Smith's questions. He raised the question of flexibility and asked if there will be oversight of these agreements. We can see from the example of how the Caribbean European partnership agreement is already being implemented that this is the case. The five yearly review was held and a joint ministerial council meeting was held last July to review that. It found there were areas that implementation has not proceeded as expected because of the global economic circumstances. That review, and the recommendations flowing from it, shows that there are systems in place once these agreements are being implemented. There is the joint ministerial council, the trade and development committee, which is made up of senior officials, the parliamentarians group, which is made up of the Caribbean and EU parliamentarians, and a consultative committee, which is made up of civil society. All these parties are involved in reviewing the agreement and feeding into how it can be improved in the future. That is the oversight. There are also examples of flexibility given that so far some Caribbean countries, because of the legislative procedures involved, have not been able to meet all the targets on reducing their tariffs. It is not a case of the EU coming in with heavy boots and saying they have not met the deadline. The EU is talking to the countries involved and listening to the issues they have. It is not pushing the issue but rather is taking it on board as part of this five yearly review.

The Deputy referred to safeguards in the agreement to ensure fairness. As the Minister of State mentioned in his opening statement, there are safeguards in place whereby in the case of too much of a product being imported into a country and that affecting local markets, the country can avail of the safeguard in the agreement. Also, infant industries are protected by safeguards. These safeguards are more flexible than one would get at the World Trade Organization. They have been specially designed for these development agreements.

The Deputy asked about studies that have been done. The European Centre for Development Policy Management did a study for us in Irish Aid in 2012 on trade liberalisation and fiscal adjustment. It examined previous studies and showed that the fiscal loss impact has been overestimated in many studies, but nonetheless it stated that of all regions west Africa would be more affected than others by fiscal losses. It is for that reason the negotiators, as the negotiations were proceeding, recognised that west Africa would be more affected. That is the reason the PAPED was developed. The west African countries got together and in a participatory way came up with the EPA development programme and they pointed out the issues that would need to be addressed for such an agreement to be successful. The European Council of Ministers came up with conclusions and said they would address those in 2010 and last year. Also, a more recent study by the World Bank, specific to Nigeria, has shown that there will be very limited fiscal losses, marginal welfare gains for consumers, and increased jobs and profits for the majority of manufacturing firms in Nigeria from the EPA.

The Deputy raised the issue of poultry. The EPA has not come into effect yet. Therefore, difficulties in the poultry sector are not caused by the EPA. The poultry sector is excluded from liberalisation under the EPA. The Deputy mentioned the issue of local production, which I have addressed with regard to the safeguards. Article 34 deals with the prohibition of quantitative restrictions. If there are any difficulties with that provision, the safeguards will kick in. The Deputy asked about the transfer of knowledge, and that is exactly what PAPED is all about. It is about providing assistance in order that the west African countries can build up their trade capacity and move into more intermediate products rather than depending on basic commodities. We in Irish Aid hope we are playing our part in this. For example, our support for the international trade centre helps countries build up trade strategies. It works with the private sector and helps those countries to move into higher value products and to export to the EU and all around the world.

I will now respond to Deputy Durkan's questions. He raised the question of milk. Milk is excluded under the liberalisation schedule as a sensitive product.

The Deputy also mentioned how aid for trade was advanced in the negotiations. Sometimes the phrase "aid for trade" can be a misnomer. The Deputy was correct in what he said, namely, that there is very much a separation in Ireland between aid and trade in that we provide aid but it is totally separated from trade. There is an agenda at the WTO and it is called for aid for trade agenda. It seeks to build up the capacity of developing countries. For example, at the WTO we support interns at the missions of least developed countries and they provide great support. They can learn about WTO mechanisms, and when they return to their home countries, they know how to use the safeguards in these agreements and in WTO agreements. PAPED came about from how aid for trade was advanced. The west African countries said that to implement this agreement, they would need assistance to build up our trade capacity. There is where that comes from.

On the question of what this agreement will bring to small producers in Europe, it would bring them potential increased markets. However, we must recognise that when the Caribbean EPA was being brought in, there were estimates that there would be increased exports from the EU, but because of the economic crisis, that has not come to pass to date. There was an increase in exports at one stage but then it declined again. Over the course the Caribbean EPA, the volume of exports from the EU has gone up and down and then levelled off. Trade agreements in themselves do not ensure something will happen. They provide a framework and then the companies need to inform themselves about the framework that is in place and take advantage of it. It can take a while for that to happen. Such agreements create a framework, an opportunity and clarity for business, and then that opportunity must be grasped. That is the idea of PAPED and the development co-operation for the west African side, namely, to help them grasp that opportunity.

For example, Irish Aid has given €800,000 to the International Trade Centre in Geneva this year. It produced a guide to the agreement for the Caribbean businesses. Such initiatives will help businesses grasp the opportunities these agreements present.