Mr. Mark Redmond:

I thank the Chairman and committee members for inviting us to speak to them. As the Chairman stated, I am joined by Mr. Brian Cotter, director of public affairs at the American Chamber of Commerce Ireland. We are here to discuss the potential benefits for Ireland of a comprehensive transatlantic trade and investment partnership, TTIP, or EU-US trade deal. With the Chairman's permission, I will begin by talking about the work of the chamber and the importance of the bilateral economic relationship between Ireland and the United States.

The American Chamber of Commerce Ireland represents the 700 US companies which have created jobs in Ireland and which directly employ at least 115,000 people. At least the same number of jobs has been created indirectly as a result of US company employment here. These companies account for over 70% of all IDA Ireland-supported employment. Total US investment in Ireland stands at $204 billion and represents 26% of GDP.

It is important to note that this is a two-way street. The relationship is bilateral - 230 Enterprise Ireland companies have created at least 130,000 jobs across the 50 states of the United States. We are constantly amazed at the vote of confidence of the United States in Ireland. The total investment here exceeds the combined investment by the United States in France and Germany and exceeds by 20% the combined investment in the BRIC countries, Brazil, Russia, India and China. For such a small country we have succeeded exceptionally in becoming a global location of choice for investment and trade. Ireland is home to nine of the top ten pharmaceutical companies in the world and 13 of the top 15 medical technology companies and is rightly considered the Internet capital of Europe, with all ten of the top ICT and "born on the Internet" companies located here, creating fantastic jobs.

These companies and their 115,000 employees are creating outstanding products and services that are making a difference to people's lives throughout the world. For example, four out of every five medical stents used throughout the world, 50% of all hospital ventilators which save and help to maintain lives throughout the world and one third of all contact lenses which are very important in the context of the events of this week are made in Ireland. They have an impact on our social fabric, the education system, the job opportunities available to young people and our physical infrastructure. A short walk from here the "digital docklands" have been transformed by the vote of confidence of these companies.

The chamber's role is to encourage a policy environment that attracts this investment and keeps these jobs in the country by fostering the development of bilateral trade and investment flows between Ireland and the United States. Reasons for our success include certainty in policy; the commitment at the highest political level to ensuring we create a jobs-friendly environment; the outstanding qualifications of Irish people; the transparent tax system; and, most important, as recognised throughout the US foreign direct investment community, the ability of Irish people to deliver successfully on the mandates they are given by US companies. We are positioned as a provider of products and services consumed globally and used daily for the reasons I have outlined.

The TTIP stands apart from other international trade agreements for several reasons. First, the scale of the existing economic relationship between the European Union and the United States is unprecedented. Nearly half of global economic output is generated by the European Union and the United States, which is extraordinary. The total commercial relationship generates €45 billion in commercial activity each day and supports 15 million jobs on both sides of the Atlantic. Second, this commercial relationship is not based solely on commercial interests but on shared values such as democracy, civil liberties, the rule of law and a long and rich history of friendship and strategic partnership. Third, the TTIP is unique because of its potential to set high standards for 21st century trade and investments agreements around the world in areas such as protecting intellectual property, cultivating the digital economy and combating trade and investment protectionism. This is a particularly important point. The benefits could be immense. Ireland is positioned as a gateway for the United States to the European market. Given that Ireland is the largest export platform in the world for US companies, we have the potential to emerge as a significant beneficiary of a successful and comprehensive transatlantic free trade deal.

The TTIP would increase the volume and value of transatlantic trade and investment, create employment opportunities, boost incomes for citizens in both the United States and the European Union, and improve the global competitiveness of both parties. Because Ireland exports 80% of everything we produce, tens of thousands, if not hundreds of thousands, of Irish jobs depend on good foreign trade relationships and agreements. Reducing barriers to trade would make a significant difference to businesses of all sizes throughout Ireland.

Various levels of monetary tariffs are imposed and average 4%. They can have an impact on Irish businesses and their reduction or removal would have significant consequences for sectors in which Ireland is commercially active. There are also non-tariff barriers and the greatest benefit of the TTIP would come from reducing these blockages which increase the cost of doing business and restrict market access. Different regulatory structures make it difficult for firms to enter the market across the Atlantic and, according to estimates, these bureaucratic hurdles alone are equivalent to customs duties of 10% to 20%. They inflict significant trade costs on industries in which Ireland has been successful in attracting investment, including manufacturing, chemicals, finance and ICT. Improving the compatibility of standards and regulations and greater mutual recognition of standards would eliminate many of these barriers.

By co-operating, both the European Union and the United States would be able to achieve legitimate policy objectives such as protecting the environment and public health, without any diminution of standards, while avoiding the duplication of effort that makes goods and services more expensive. For example, the pharmaceutical industry is one of Ireland’s biggest industries, creating significant, high value employment and producing ground-breaking treatments that are saving and enhancing lives around the world. We have nine of the top ten global pharmaceutical companies located here. Having a set of common standards would increase or maintain safety, while cutting costs. Because Irish pharmaceutical products are thoroughly tested here, they can be sold throughout the European Union, but they must undergo costly testing again to enter the US market. This is despite the fact that Irish pharmaceutical plants have an outstanding record in terms of FDA inspections and are rated extremely highly globally.

Although the Internet allows small retailers to sell their products easily across the world, exporting can be difficult. Retailers can be hindered in their exporting abilities by having to comply with a plethora of customs rates and import rules for all the products they sell. This is particularly burdensome for the small and medium-sized business sector. Eliminating tariffs and streamlining regulatory procedures will make it easier, faster and cheaper for online retailers to ship their products and access markets that were too complex to tap into before.

The Centre for Economic Policy Research, a leading independent, pan-European economic research organisation, has predicted that an ambitious EU-US trade deal would increase the size of the EU economy by approximately €120 billion, 0.5% of GDP, and the US economy by €95 billion, or 0.4% of GDP. I need not tell members about the difficulty in our current straitened budgetary times of coming up with innovative ways to stimulate the economy and create jobs. This is a very important opportunity for us to do so.

Ireland is well positioned to benefit significantly from a successfully concluded transatlantic trade and investment partnership, TTIP. As I hope the committee has seen, we have built a very strong and solid foundation for investment in our country and we foresee substantial opportunities arising from greater and easier EU-US trade and investment. The small and medium enterprise, SME, sector has most to gain from these new possibilities as removing tariffs and reducing red tape and regulatory burden for them will, importantly, allow access to new export markets and opportunities that are currently out of reach. I assure the committee that the American Chamber of Commerce Ireland will continue to support the efforts on all sides to reach an ambitious and comprehensive agreement and spread the positive message of the EU-US trade deal.

I thank the committee for its attention and we are happy to take any questions.