Oireachtas Joint and Select Committees
Wednesday, 10 April 2024
Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach
Illegal Israeli Settlements Divestment Bill 2023: Discussion (Resumed)
Mr. Ronnie Downes:
If that is agreed, we will try to be as helpful and efficient as we can in dealing with the important questions raised. Dealing with them in order, the Senator asked why a review was requested rather than a suspension of the EU-Israel association agreement. As a precursor to that, the decision from the Taoiseach to request, along with the Spanish Prime Minister, was a political decision by an Taoiseach and his Department. We do not have full insight into what the rationale for it was. I think we need to understand that a decision to suspend that agreement would require an European Council decision. In terms of setting a pathway for such a decision to be made, one can see why it might make sense to have an evidence-based approach and to request the Commission to do a review, which would set out plainly the facts that would enable the Council to reach a determination in due course. I guess there is an alternative approach, as the Senator suggested, to go straight and request that. However, perhaps there is a degree of consensus building around that issue. We have not heard back the details from the Commission yet but it is my understanding that it would require unanimity from the Council to suspend the agreement. Part suspension is also permissible – this would be the subject of legal advice – which might allow for a QMV-type approach. However, I can only surmise that is why that approach was taken, if that is helpful.
The Senator asked whether the occupied territories are subject to the trade competence more generally or what the legal basis for trading with them is because they are not subject to the EU-Israel association agreement. As a general principle, Ireland is a member of the World Trade Organization along with 165 other countries. Trade around the world is governed by the terms of the WTO. Unless there are trade restrictive measures in place - sanctions in place - in respect of particular countries, the WTO trading regime is the default mechanism that imposes a certain minimum standard set of tariffs that apply between all countries and territories. It is open to countries to impose sanctions and put restrictive measures in place or it is open to them to be more generous by having free trade agreements or association agreements in place. In default of either of those, the WTO rules are in place, so that is what governs-----
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