Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

The Deputy introduced a new matter that was not in his original question. The mandate given to the European Commission, the negotiator for the EU in the transatlantic trade and investment partnership, TTIP, negotiations is a broad-ranging one. It builds on the outcome of the work of the EU-US high level group that recommended that negotiations on a comprehensive trade and investment agreement between the EU and the US should aim to achieve ambitious outcomes in three broad areas, namely, market access, tariffs and quotas, regulatory and non-tariff barriers, and rules addressing shared global trade challenges and opportunities.

Regulatory differences can represent unnecessary barriers to trade. Reducing such barriers to trade will be one of the most important ways TTIP will help to achieve the expected economic benefits from an agreement. Studies suggest that between two thirds and four fifths of the gains would come from reducing unnecessary administrative burdens, as well as having more co-ordination between regulators. A simple example would be a pharmaceutical product having to be clinically trialed in both the EU and the US, creating an unnecessary cost. Mutual recognition would be a significant gain in this regard. Closer co-operation between EU and US regulators should make regulation more effective and efficient and, for example, should reduce costs for business and regulators by eliminating unnecessary duplication of inspections.

Agreeing common standards may encourage other countries to bring their standards up too. This has the potential to lessen trade barriers internationally and increase the opportunities for greater international trade and investment, just what the world economy needs right now. Reducing barriers does not mean reducing standards, rather it means finding ways to achieve our legitimate public policy objectives, be they food safety, product safety, chemicals usage, environmental or worker health and safety, without maintaining or creating artificial and unnecessary trade barriers.

According to assessments made by the European Commission and other European bodies, a comprehensive partnership could, over time, boost EU gross domestic product, GDP, by 0.5% per annum and help create approximately 400,000 jobs in the EU. Based on those assessments, if Ireland simply benefited in proportion to the size of our economy, a comprehensive trade and investment partnership could, over time, provide gains to Ireland in excess of €800 million per annum in increased GDP and 4,000 new jobs.

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