Eamon Gilmore (Dún Laoghaire, Labour)
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I thank the committee for the opportunity to discuss the three motions referred to the committee for consideration. The motions seek Dáil approval of the terms of EU international agreements with South Africa, the Republic of Korea and Indonesia. As members of the committee will be aware, the three agreements in question involve mixed competence. This means that some of the areas covered by the agreements, such as economic co-operation and trade relations, fall within the exclusive competence of the European Union, while others, such as justice and home affairs, remain within the competence of member states. For this reason, each EU member state is a party to these agreements and they can only formally enter into force after they have been ratified by all member states and endorsed by the European Parliament. In Ireland's case, the approval of Dáil Éireann is required prior to ratification whenever the terms of the agreement involve the possibility of a charge on public funds. As it can take a considerable length of time before ratification procedures are completed in all 27 member states, arrangements are usually made for some aspects of the agreements to be applied on a provisional basis pending their formal entry into force at a later date.

These new agreements with South Korea and Indonesia and the updating of the existing agreement with South Africa clearly signal the EU's intent to become a more effective global player. Partnership and co-operation agreements with the Philippines and Vietnam have recently been signed and one with Mongolia is awaiting signature. Negotiations on far-reaching agreements with Canada and Singapore are almost completed while trade talks are about to begin with Japan. In addition, the EU is moving towards the opening of negotiations with the US on a landmark transatlantic trade and investment partnership.

We can see that under the Lisbon treaty the EU has developed real instruments of foreign policy. The framework and the tools are now in place to enable the Union to more effectively defend its values, promote its interests and be more present in the world. Three years on from their creation, there is a fuller appreciation of the benefits of having a permanent President of the European Council, a High Representative for Foreign Affairs and Security Policy and a European External Action Service. We are seeing greater coherence in the Union's external actions and more clarity in its interaction with its global partners. This is important because in our globalised world the relationships that Europe builds with its key partners will determine its future prosperity. I am aware that the committee has taken a strong interest in the human rights clauses in EU international agreements and I welcome this.

I also wish to assure the committee that human rights concerns are fully integrated into the EU's approach to external relations. The purpose of agreements with partner countries such as those before us today is not just to increase trade and improve prosperity. They also provide a framework for the EU to promote the principles and values on which the Union was founded, which are democracy, respect for human rights and fundamental freedoms and the rule of law. Since 1995, the EU has implemented a policy of systematically including an "essential element" clause into all framework agreements with third countries, stipulating that respect for human rights and democratic principles forms the basis for the agreement. The essential elements clause provides the legal basis for positive measures, such as human rights dialogues, as well as for negative measures in case of serious violations of human rights.

I would like now to introduce the EU-Indonesia partnership and co-operation agreement to the committee for approval. This agreement was signed in 2009 and, as of now, it has been ratified by 24 member states. It was the first such agreement to be concluded by the EU with a country which is a member of ASEAN, the Association of South East Asian Nations. The completion of negotiations with Indonesia demonstrated the EU's desire to strengthen its links with the region and it has paved the way for negotiations with a number of other ASEAN members, such as Brunei, Malaysia, Philippines, Singapore, Thailand and Vietnam.

The partnership and co-operation agreement will allow the EU to strengthen political dialogue and co-operation with Indonesia. It will also provide the framework for closer co-operation in a wide range of policy fields, including trade and investment, environment, energy, education, science and technology, migration and counter-terrorism. In addition, a new EU-Indonesia human rights dialogue was launched in 2009, which has resulted in intensified exchanges on human rights issues of mutual interest. The agreement has also allowed for further development of intercultural exchange and engagement with moderate Islamic groups. It has reinforced the EU's development co-operation programme in Indonesia, which supports, among other areas, democratisation; good governance; poverty reduction, including education; improvement of the trade and investment climate; tackling environmental problems; and promoting ASEAN co-operation.

How does this agreement affect Ireland? Currently, Ireland's relationship with Indonesia remains underdeveloped. Our bilateral relations are maintained on a secondary accreditation basis from Singapore, with Indonesia's ambassador in London accredited to Ireland. My Cabinet colleague, the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, recently visited Indonesia as part of an overall trade-focused trip to south-east Asia over the St. Patrick's day period. He was the first Irish Minister to visit Indonesia in over a decade.

Indonesia represents a wealth of opportunity for Ireland. With a population of 250 million it is the world's fourth most populous country. Its GDP in 2012 was €685 billion, making it the world's 16th-largest economy. It has recorded economic growth rates of over 6% per annum for the past three years and it is predicted that by 2020 it will be the world's sixth or seventh-largest economy. Trade with Indonesia is growing, albeit from a low base. In 2012, Ireland's total merchandise trade with Indonesia was valued at €162 million, an increase of 15% over 2011. Total trade in services is also rising from €141 million in 2010 to €204 million in 2011. There is considerable potential to increase trade and investment flows between Ireland and Indonesia from their current low levels. There are also opportunities in services, including education and tourism. This agreement provides part of the framework necessary for Ireland to take our relationship with Indonesia to the next level.

I will turn now to the EU-South Korea framework agreement. This agreement was signed in 2010 and to date it has been ratified by 20 member states. The framework agreement was signed at the same time the EU upgraded its relationship with South Korea to that of strategic partnership. This strategic partnership is underpinned by two agreements - the EU-South Korea free trade agreement, which is the first such agreement to be signed by the EU with an Asian country and which came into effect on 1 July 2011, and this framework agreement. The framework agreement promotes economic growth and sustainable development through co-operation in a broad range of fields, including business co-operation, competition policy, science and technology, education, agriculture and the environment. It also provides for strengthening co-operation in migration and combating organised crime and illicit drugs.

The framework agreement with South Korea will allow the EU to engage with this important partner to addresses a wide range of areas of mutual international concern, such as non-proliferation of weapons of mass destruction, human rights, co-operation in the fight against terrorism, climate change, energy security and development assistance. The EU-Korea relationship is probably the most developed in terms of political and economic relations compared to other EU relationships in the region. South Korea is and will remain in the future a major player in the global information and communications technology field, despite growing regional competition.

In what way will this agreement affect Ireland? Ireland's relationship with South Korea is firmly rooted in the economic sphere. Our embassy in Seoul was opened in 1989, with a strong focus on building economic relations, and that focus remains today. My Cabinet colleague, the Minister for Transport, Tourism and Sport, Deputy Varadkar, recently completed a visit to South Korea, where a key objective was to seek out new trade openings. The entry into force of the new EU- South Korea free trade agreement offers scope for Ireland to generate new and significant export opportunities. From information technology sectors to education to the food and beverage industry, South Korea represents a market in which Ireland is well positioned to do business.

Trade with South Korea is steady but we can always do more. Total merchandise trade between Ireland and South Korea in 2012 was valued at €689 million, exports were valued at €356 million and imports at €333 million. While this represents a small increase in overall trade year-on-year, of more significance is the fact that exports to South Korea increased by €56 million, or 18%, in 2012. As with Indonesia, considerable potential exists to further increase trade and investment flows between Ireland and South Korea from their current levels. There are also opportunities in the services sector that we will pursue, especially in education and tourism. This agreement provides part of the framework which has taken the EU-Korea relationship to the next level. Ireland can also use this framework to take our bilateral relationship to new heights.

I will deal now with South Africa. Relations have flourished since the birth of democracy in South Africa in 1994 and it is one of the EU's key partners in Africa and globally. The agreement with South Africa signed on 11 September 2009, which we are discussing today, amends the agreement on trade, development and co-operation which the EU signed with South Africa in 1999 and which came into effect in May 2004. The 1999 agreement, known as the TDCA, provides the legal basis for close relations on trade, development, economic co-operation and political dialogue. EU-South Africa relations were further consolidated with the establishment of a strategic partnership in 2007 which provided for enhanced political and policy dialogues and co-operation, as well as an overarching structure including annual summits and ministerial-level meetings.

The duration of the basic TDCA is unspecified but provision was made for its revision within five years. This agreement is the first such revision and it was completed five years after the TDCA came into force. It comprises four Articles. Article 1 outlines the amendments made to the original TDCA. Articles 2 to 4 are general technical provisions dealing with the languages in which the agreement is drawn up, approval procedures and subsequent entry into force.

I will now briefly outline the main amendments made to the original TDCA as set out in Article 1. Articles 1(3) to (7) provide for greater and deeper co-operation in the areas of information and communications technology, energy, mining and minerals, and transport, and add maritime transport as a new area of co-operation. Articles 1(9) to (20) update development co-operation arrangements bringing a clearer, more efficient and joint approach, reflecting new international commitments such as the millennium development goals agreed in 2000, and making some technical amendments. Articles 1(21) to (24) provide for deeper co-operation on science and technology, and on social issues, as well as reflecting work in international fora and updating and clarifying the language on environment and cultural co-operation. Article 1(25) aims at greater co-operation on addressing illicit drugs.

Co-operation on disarmament and non-proliferation is introduced via Articles 1(1), (2) and (27). Article 1(27) introduces seven other new Articles into the agreement dealing with the following: co-operation in the areas of combating terrorism, money laundering and the financing of terrorism; combating organised crime; illicit trade in and excessive accumulation of small arms and light weapons; prevention of mercenary activities; strengthening co-operation with the International Criminal Court; and co-operation on migration. Article 1(28) deals with the efficient provision of financial assistance via EU development and international co-operation budgets.

In summary, the amending agreement signed in 2009 updates and makes technical improvements to the original agreement with South Africa, while also deepening and expanding co-operation across a range of areas of political importance as well as justice and home affairs. It forms part of the strong foundations for ongoing positive EU relations with South Africa.

I thank the committee for its time. I am happy to recommend these three agreements for approval. They will broaden and deepen the EU's relationship with Indonesia, South Korea and South Africa on the basis of shared values and interests. They will help to raise the profile and visibility of Europe in the countries in question and in the Asia and southern Africa regions. This, in turn, will open up greater opportunities for Ireland to forge stronger political, commercial and trade links with, in the case of South Africa, a regional economic power and, in the case of Indonesia and South Korea, two countries in a region that is expected to drive global economic growth in the coming decade. I would encourage the committee to recommend to Dáil Éireann that the proposed motions be approved, so that Ireland is in a position to notify the Council of the completion of its ratification procedures.

I am happy to take questions at this point.