Dáil debates

Thursday, 6 March 2008

World Trade Organisation: Statements

 

2:00 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)

Absolutely. The WTO is an organisation for liberalising trade, a forum for governments to negotiate trade agreements, a place for them to settle trade disputes, and it operates a system of trade rules. The WTO is a forum where member governments attempt to solve trade problems with each other. This is a very important aspect of the WTO. It can use its clout when smaller countries come under pressure and can assist them by not hammering them economically. I refer in particular to the United States and its blockade of Cuba which is an international disgrace. A small country like Cuba is trying to change and develop but it is being hammered by its next door neighbour the USA. I urge the Minister to raise these issues at international level.

The WTO is the only international organisation dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. The result is assurance. Consumers and producers know that they can enjoy secure supplies and greater choice of finished products, components, raw materials and services. Producers and exporters know that foreign markets will remain open to them. The result is a more prosperous, peaceful and accountable economic world.

Virtually all decisions in the WTO are taken by consensus among all member countries and are ratified by the members' parliaments. Trade friction is channelled into the WTO's dispute settlement process where the focus is on interpreting agreements and commitments to ensure that countries' trade policies are in conformity with them. The risk of disputes spilling over into political or military conflict is thus reduced. It is important to reduce the potential for military conflict and we must remain vigilant on that issue. This is the reason many of us are concerned about these issues because they are coming down the tracks and we need to be creative in our response.

By lowering trade barriers the WTO system also breaks down the other barriers between peoples and nations. The heart of the system is known as the multilateral trading system. These are the WTO's agreements negotiated with and signed by a majority of the world's trading nations and ratified in their parliaments. These agreements are the legal ground rules for international commerce. They are contracts guaranteeing member countries important trade rights. They also bind governments to keep their trade policies within limits which is to everyone's benefit. The agreements were negotiated and signed by governments but their purpose is to help producers of goods and services and exporters to conduct their business in a positive way.

The outcome of the current negotiations will determine the maximum levels of protection support which will apply to the agricultural sector in the future. Given that the process of liberalisation will be significantly more advanced, the negotiations represent a real challenge to the future of Irish agriculture. I agree with some of the comments made earlier. I urge people to be sensitive and strong with regard to this issue.

The original GATT applied to agricultural trade but it contained some loopholes. It allowed countries to use subsidies and some non-tariff measures such as import quotas. Agricultural trade became highly distorted with the use of export subsidies which would not normally have been allowed for industrial products.

The Uruguay Round produced the first multilateral agreement dedicated to the sector. It was a significant first step towards order, fair competition and a less distorted sector. It was implemented over a six-year period and is still being implemented by developing countries under the ten-year period which began in 1995. The Uruguay Round agreement included a commitment to continue the reform through negotiations. These were launched in 2000 as required by the agricultural agreement. This is to do with fairer markets for farmers and it is not just a rural issue.

I represent an urban area but every Member of the Oireachtas has a responsibility to be supportive of farm families and the agricultural sector. Every Member of the Oireachtas should be behind this industry because of its importance. There is potential for further decline and we all have a responsibility.

I share the Minister's concern that the Commission has been adopting an unnecessarily concessionary approach to the negotiations. The Commission negotiates in the WTO on behalf of the member states on the basis of a mandate which is agreed in the Council of Ministers. I urge the Minister to be vigilant on this issue. The Minister is correct to be deeply concerned about the suggestion that the EU should provide further concessions on a range of agricultural issues, in particular, the level of tariff reductions, treatment of sensitive products and related tariff quota expansion. I do not find this acceptable and I agree with the Minister's earlier comments. She referred to the intensive discussions in Geneva on the text but many technical as well as political issues remain to be resolved. There should be cross-party support on this issue and we should row in behind the Minister with regard to this issue. As an Independent Deputy representing an urban area I will continue to push this issue and to be very supportive of agriculture. These are crucial issues.

We all have a duty to protect and develop our agricultural industry. We have a duty to assist farm families and these issues should be top of the political agenda.

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