Seán Sherlock (Cork East, Labour) | Oireachtas source

With your permission, Chairman, we will reply as a team. I wish to make a broad point about EU trade policy, to which we subscribe. I refer members to "Trade for All: Towards a more responsible trade and investment policy", a document published last month by the European Commission. It contains a foreword by Cecilia Malmström, the EU Trade Commissioner. The new approach "also involves using trade agreements and trade preference programmes as levers to promote, around the world, values like sustainable development human rights, fair and ethical trade and the fight against corruption. We will use future EU agreements to improve the responsibility of supply chains." In terms of seeking to have a debate on the issue, and referring to Deputy Maureen O'Sullivan's point, I agree that there is a need to discuss the wider EU policy implications of trade agreements of this nature in the House and in this committee. I will do anything I can to facilitate such discussions. If one is to interpret this forward, there is definitely a shift in the thinking by the Commission on trade policy and I encourage members to engage with that document.

I am aware of the position of CONCORD in respect of the west African farmers' organisation. I note that Germany, one of the countries that was mentioned, has signed up to this agreement. The focus of CONCORD with regard to the west African farmers was on unfair competition from EU agricultural products, fiscal losses, trade diversion towards the EU and the undermining of regional integration.

On unfair competition from EU agricultural products, west Africa decided internally to exclude almost all agricultural products from liberalisation. We are confident that if difficulties arise, the agreement also contains robust safeguards which west African countries can use.

Mary Barrett referred previously to the Irish Aid report which kicked the tyres, as it were, on this. That was in 2012. On the issue of fiscal losses, there was a general tendency to over-estimate the direct fiscal losses resulting from an EPA, but it was found that the greatest fiscal impacts were to be expected in west and central Africa. The report suggested possible strategies to address this. One was playing with liberalisation schedules in the EPA, second was direct compensation, third was accompanying assistance leading to higher tax collection through economic growth and fourth was using EPAs as a catalyst for wider tax reform to broaden the tax base and increase compliance. All of these strategies have been accommodated with the agreement with the west African countries, taking sensitivity for revenue purposes into account in their excluded product lists, and the EPA development programme, or PAPED, to deliver assistance in this regard and provision for dialogue on tax reforms and associated support from the European Union. It was the recognition of potential for fiscal losses to be a bigger issue in west Africa that led to the detailed discussions on the PAPED and the associated commitments outlined in the Council Conclusions in 2010 and 2014. The European Commission has clearly stated in its latest fact sheet on the EPA that the amount allocated under the PAPED corresponds to the existing needs as estimated by the west African authorities and that the EU will continue helping west Africa throughout the implementation process. The EU support will continue beyond 2019.

On trade diversion, which was another point raised by CONCORD, under the agreement west African states have agreed to grant each other at least the same treatment as they are granting the European Union, which speaks to a point made by Deputy Eric Byrne. This is designed to encourage regional integration and prevent trade diversion by EU products. On the issue of undermining regional integration, the negotiation of the EPA actively supported integration in west Africa as the 16 countries and two regional organisations define common positions and policies on the issues at stake. The west African market access offer to the EU is fully aligned with the ECOWAS common external tariff adopted in October 2013 which lays the basis for the ECOWAS customs union. The implementation of the EPA and the ECOWAS-CET are going hand-in-hand and they will mutually reinforce each other. Regional integration will be enhanced as the agreement's provisions make customs procedures easier and more efficient.

Issues were raised regarding the Irish dairy sector, exporting certain types of products and whether those products had been lessened in quality in any way. That is something on which we need further engagement. If there are specific and concrete examples of that, we would wish to hear about them. I am confident, and I speak objectively on this, that there is transparent production from farm to fork with anything we export. We adhere to the highest standards in that regard and we are bound by EU rules regarding the standards of those products, whether they are exported within the European Union or externally. The use of the farm to fork motto is something Deputy Smith might have fashioned when he was Minister with responsibility for agriculture.

My central point is that we must be careful about assertions being made about Irish product going to third countries. If there is a contention that some of those products are being undermined or devalued in any way to meet export goals and bottom line and profit margins, we must engage further on that. However, we are absolutely clear in terms of Irish Aid policy and Irish foreign policy. Irish Aid policy has always been about ensuring that whatever we bring to internal trade negotiations, in terms of an Irish position vis-à-visa final EU position, it has been on the basis that the best rules of probity apply and that it is not a paternalistic trade relationship but a relationship of equals. That is inherent in Irish Aid and in Irish foreign policy.

Integrating values into EU trade policy also means using trade policy as a lever to promote European values with all parties around the world. Trade agreements and trade preference programmes can be vehicles to enhance respect for sustainable development human rights, fair and ethical trade and the fight against corruption. The Commission is saying that it will use future EU agreements to better address those issues. For example, for the first time the Commission has proposed to include anti-corruption rules in EU free trade agreements. I hope we will have more time in this committee to debate that policy, "Trade for All: Towards a more responsible trade and investment policy".

With regard to TTIP, before engaging on the current Irish farmers' response to TTIP, it is important, with the Chairman's indulgence, to give a technical brief as to the current position of those trade negotiations.

Sometimes there is a perception that it has been locked down and absolutely concluded but that is not the case. There are some political points in respect of the concerns of Irish farmers with regard to the TTIP rules. If I may defer to Ms Benson, she might give a current overview of TTIP.