Johnny Brady (Meath, Fianna Fail)

I also welcome the opportunity to speak on this issue which is of grave importance to Ireland. The proposals being considered by the WTO in the lead-up to the Hong Kong meeting in December, including those of the EU's, would devastate Irish farmers' incomes. Furthermore, they would result in all farm enterprises, excluding the decoupled payments, operating at a loss. The result would be an unprecedented fall in output which would, in turn, impact severely on rural areas and the national economy. Once agreed, these proposals will be irreversible and will lead to an acceleration in rural decay through the decline of population and infrastructure.

Upon agreeing the mid-term review of the Common Agricultural Policy, the EU's Agriculture and Fisheries Council stated that it constituted the basis for the EU offer to the WTO and that any WTO agreement must not involve a change in the mid-term review agreement which is to run until at least 2013. Under the EU treaty, the European Commission is delegated power to negotiate on behalf of all member states in strict legal accordance with a mandate from the Council of Ministers. It is quite evident that the offer made by Commissioner Peter Mandelson breaches the decision taken by the Agriculture and Fisheries Council and is, therefore, outside the mandate given to the Commission.

The WTO is about trade. Ireland is an open economy and highly dependent on trade. For example, it is more dependent on third country agricultural exports for animal products than any other member state. Ireland stands to lose the most from adverse changes in international trade rules. Even after the recent significant expansion of the Irish economy, the agrifood sector still constitutes an important element, being 9.4% of gross domestic product, 8.5% of employment and 8.4% of exports.

The EU is the world's largest importer of agricultural goods, importing more than €60 billion per annum. The EU is also the world's largest importer of farm products from developing countries. It imports from developing countries as much as the United States of America, Japan, Canada, Australia and New Zealand combined. The EU absorbs approximately 85% of Africa's agricultural exports and 45% of Latin America's. The EU is a net importer of agricultural products and imported €6.5 billion more of agricultural products than it exported in 2001. In contrast, the US is a net agricultural exporter. In the context of these already high levels of imports, there must not be any further opening up of EU markets. The EU must not be railroaded into giving away more of its domestic markets by the US, for example, which does not import a single kilogram of fresh meat from South America.

The three elements of the WTO negotiations — export refunds, domestic support and market access — are all important. However, market access is of critical importance in respect of EU farm prices. Overall, 22% of Irish agrifood exports required an export refund in 2004. Export refunds paid on Irish exports in 2004 were worth €215 million to the Irish economy and supported the export of €455 million of Irish dairy products and €66 million of beef products.

I wish the Minister of State at the Department of Enterprise, Trade and Employment with special responsibility for trade and commerce, Deputy Michael Ahern, and the Minister for Agriculture and Food, Deputy Coughlan, the best of luck in these negotiations. Knowing both, they will not be found wanting in defending Irish interests.

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