Paddy McHugh (Galway East, Independent)

The world trade negotiations we are discussing today commenced in 2001 with an expectation that they would conclude in January 2005. The target date for completion is now the second half of 2006. The danger is that if that target date is not met, it is likely that the major players will move towards negotiating bilateral or regional agreements. That would not particularly suit Ireland and the development aim of the current round would be lost, which would not be in the interest of the poorer countries. It is also likely that the interests of the poorer countries will not be dealt with if the multilateral approach is abandoned.

While, for Ireland, the negotiations about trade and agricultural products and supports are of great importance, the WTO negotiations are also concerned with trade in industrial products, services and the developmental aspects. We cannot lose sight of that fact. When one considers that there are almost 150 countries in the WTO and the issues to be addressed are so expansive, covering economic, political, social and environmental issues, it is easy to appreciate the magnitude of the task in reaching agreement.

From Ireland's perspective, the outcome of the talks as they relate to Ireland is vital from an agricultural point of view. As the dairy and beef sectors are the main elements of Irish agriculture, the impact of the proposals on the agri food sector could have major consequences for Ireland and could put the jobs of 112,000 farmers and 54,000 people employed in the agri food sector in jeopardy. The proposals being considered by the WTO in the lead up to Hong Kong would devastate Irish farm incomes. They would result in farm enterprises being operated at a loss. That is excluding decoupled payments. The result would be a fall in output which would impact seriously on rural areas and the national economy. The proposals, if agreed, would be irreversible and would lead to an acceleration of rural decay through a decline in both population and infrastructure.

However, a successful outcome to the talks is vital from a global perspective. While 1 billion people live on less than $1 per day, most of them farmers and farm workers, one can see that the system needs to be reformed. The sooner an agreement is reached, the better for everybody.

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