Séamus Kirk (Louth, Fianna Fail) | Oireachtas source

I am pleased to have an opportunity to contribute briefly to this most important debate. The Fianna Fáil Party supports the principles of the TTIP. However, there are certain caveats. The successful conclusion of the EU-US free trade agreement, TTIP, depends on maintaining proper food standards and ensuring the jurisdiction of our courts will not be undermined.

An agreement on the TTIP could boost the European economy by more than €100 billion annually and create up to 10,000 extra jobs in Ireland. As an exporting country, Ireland stands to benefit disproportionately from the potential for expanded market access, given that 49% of our non-EU exports are to the United States.

The European Union and the United States are negotiating a trade and investment deal which would create the world’s largest free trade area, but the many challenges faced and the increasing public opposition put the successful conclusion of an agreement in doubt. In February 2013 EU and US leaders announced the start of procedures for negotiating an ambitious and comprehensive transatlantic trade and investment partnership, following the final report of the EU-US high level working group.

After a positive impact assessment by the European Commission, the Council approved the Commission’s proposed mandate for negotiations in June 2013. Talks, led by the European Commission and the US trade representative, started in July 2013; a fourth round was completed in March 2014 and a fifth is scheduled to be held between 19 and 23 May. Observers are sceptical, however, about the 18 to 24 month timeframe to reach a deal. Although negotiators are aiming for an agreement to be struck before the end of President Obama’s mandate in 2016, officials are privately pessimistic as to the reality of that deadline.

Fianna Fáil will only support a TTIP deal which upholds fully food safety standards and the way the European Union sets them. The European Union must ensure food standards would not be diminished in Europe by the agreement. This country must raise its voice to defend our interests in agriculture and the agrifood sector in the negotiation of th deal.

A number of key facts and figures for the agriculture industry are as follows: in 2015 Irish agrifood and drink exports increased by an estimated 3% to approximately €10.8 billion. The figures were prepared by Bord Bia in 2016. The United Kingdom was the main destination for Irish agrifood and drink exports in 2015, accounting for 41% of all exports. A total of 31% of exports went to continental EU markets, while the remaining 28% went to international markets.

The latest estimates for the distribution of our agrifood and drink exports in 2015 by sector are as follows: dairy products and ingredients, 30%; prepared consumer foods, 17%; beef, 22%; live animals, 2%; beverages, 12%; pigmeat, 5%; poultry, 3%; sheepmeat, 2%; seafood, 5%, and edible horticulture and cereals, 2%.

In 2015 Ireland exported an estimated 524,000 tonnes of beef worth approximately €2.19 billion. In 2015, 178,000 cattle were exported live from Ireland worth approximately €135 million. The Irish sheep flock showed a rise of 1.3% and totalled 5.16 million head, with the breeding flock decreasing by approximately 1.1% to 2.56 million head according to the June 2015 livestock survey.

During 2015 Ireland exported an estimated 47,000 tonnes of sheepmeat valued at approximately €230 million. In 2015 Ireland exported an estimated 230,000 tonnes of pigmeat worth an estimated €570 million. In 2015 the United Kingdom was the main market for Irish pigmeat, taking 40% of our total exports. In 2014 total milk output was estimated at 6,161 million litres. From this total milk output, 480 million litres was consumed as liquid milk.

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In addition, 166,000 tonnes of butter, 71,000 tonnes of skimmed milk powder and 215,000 tonnes of cheese were produced in 2014. In 2015 total dairy and ingredient exports increased by an estimated 4% to €3.24 billion. Quotes from Teagasc highlight the importance of agriculture to the economy and it needs to be protected and supported. We in Fianna Fáil will only support a TTIP deal which upholds fully food safety standards and the way the European Union sets them. The Commission has stated current EU law on GMOs or hormone-treated beef will not change with the TTIP. This is a pledge which the Union must be robust in enforcing. Similarly, the chief EU negotiator has ruled out mutual recognition of chemicals between the European Union and the USA.

The Department of Agriculture, Food and the Marine reports that the agrifood sector in Ireland contributes €24 billion to the national economy, generating 6.3% of gross value added and almost 10% of Ireland’s exports, and provides 7.7% of national employment. It is one of Ireland's most important indigenous manufacturing sectors. According to the Teagasc website, it includes food and drink firms throughout the country that export 85% of our food and seafood to more than 160 countries worldwide.

The TTIP's expected benefits include its stated aim of expanding trade and investment across the Atlantic, increasing employment and competitiveness and enabling a common approach to rules for global trade which third countries could also adopt. Another goal is strengthening overall EU-US relations. The EU-US trade and investment relationship is considered the largest and most important in the world. The two economies account for nearly half of global gross domestic product and 30% of world trade, with US and EU trade flows in goods totalling €497 billion and in services totalling €315 billion. The level of foreign direct investment is even greater, with total FDI stocks of €3.2 trillion in each other’s economies. The transatlantic economy sustains about 15 million jobs, which illustrates the importance of the potential agreement. Nevertheless, the TTIP’s proponents claim there is untapped potential in the relationship. The European Union argues that significant gains would arise from further liberalising transatlantic trade. An EU commissioned study asserts that a comprehensive and ambitious TTIP would bring overall annual GDP gains of 0.5% for the European Union and 0.4% for the United States once fully implemented in 2027. That amounts to an extra €545 per household in the Europeand Union per year.

Reducing non-tariff barriers and further liberalising services and public procurement would constitute around 80% of the benefits. The TTIP would positively affect global GDP by a figure of €100 billion and labour markets. Other studies also point to major benefits for income levels and job creation in the European Union and the United States but also in those countries which stand to lose from the TTIP. The TTIP would also create opportunities for small and medium-sized enterprises, mainly through trade facilitation.

Fianna Fáil wants to ensure the new opportunities to be created by TTIP would not just accrue to large companies. Such opportunities are especially valuable for SMEs, given that trade barriers tend to disproportionately burden small firms which have fewer resources to overcome them than their larger counterparts. It is welcome that there would be a dedicated chapter on SME issues within a TTIP agreement.

The negotiations cover market access, comprising the elimination of tariffs on goods and new access to services and public procurement; regulatory convergence and NTBs; and rules for global trade. The negotiators are discussing how to ensure the compatibility of existing and future regulations to reduce unnecessary costs and red tape, while achieving the levels of health, safety and environmental protection each side deems to be appropriate. In particular, five aspects are highlighted. They are sanitary and phytosanitary issues, including food safety, animal and health regulations; technical barriers to trade - technical regulations, conformity assessment and standards; specific sectors of goods and services, for example, pharmaceuticals, medical devices, automobiles and chemicals; cross-cutting disciplines and transparency; and a framework for future regulatory co-operation.

The United States stresses horizontal and transparency issues, while the European Union is prioritising the sector-specific pillar. Moreover, a US proposal to allow business more input earlier in EU rule-making, implying significant unreciprocated changes to the EU regulatory system, is opposed by the European Union and European business.

Another difficult topic is agriculture. The United States denounces EU policies and measures on genetically modified organisms, hormone-treated beef, pork fed with ractopamine and chlorine washed poultry as unjustified scientifically and a barrier to US exports. Therefore, the United States is seeking to eliminate EU SPS barriers to US meat exports. Clearly, it will be one of the most significant debating points in negotiating the agreement. The standards we apply here should be upheld. We owe it to the population of the European Union and I hope the US negotiators will recognise its importance.

US industry has been very vocal on the issues mentioned in criticising the European Union's approach and its refusal to open up such issues for discussion. The new US ambassador to the European Union has stated the European Food Safety Authority agreed with the belief of the United States that GM foods were safe and that the United States wanted the European Union to listen to its own scientific advice.

The TTIP is intended to set rules on investment protection, trade facilitation, intellectual property rights, labour and the environment and energy and raw materials which may eventually set global standards. Of these, the inclusion of investor-state dispute settlement provisions seems to be the most contentious. In the face of growing opposition, the European Union adapted its position and announced the suspension of the ISDS talks pending a three-month public consultation process on the issue from March 2014. Fianna Fail shares the concerns of citizens about the controversial investor-state dispute settlement mechanism and the ability of powerful companies to sue foreign governments. It is concerned about the abuse of investor protection provisions and the lack of transparency surrounding arbitration processes. We welcome the recent European Commission proposal to lead the way in reforming the global investment regime into a public investment court system which will operate like traditional courts.

One of the crucial issues in the United States regarding trade negotiations is trade promotion authority, or fast track, which allows the President to put a negotiated document before Congress to approve it without it being able to make amendments. Trade promotion authority needs to be granted to the President by Congress. A Bill to do this has been introduced, but the White House is facing a lot of opposition, not least from Democratic Senators. The Commission has stated trade promotion authority will in the end be essential in concluding a deal, but as the negotiations are nowhere near a conclusion, the issue is not crucial at this time.

Another important aspect in the United States is the independence of regulatory agencies. This is important in the negotiations because it means that agencies such as the US Food and Drug Agency will have to be closely involved in them as they play an important role in creating rules, regulations and procedures. Relations between the federal and state governments will also play a part, especially in opening up public procurement markets at state level to EU companies.

We are of the strong belief the TTIP agreement should not lead to lower levels of consumer, environmental, social and labour protection that those offered in the European Union. We welcome and fully support the firm commitment of the European Commission and the other 27 member states that EU standards are not up for negotiation. Ireland must work with its European partners to ensure this commitment will be upheld. We will only support a TTIP deal which upholds fully food safety standards and the way the European Union set sets them. The European Union must ensure food standards will be not diminished in Europe by the agreement. Ireland must raise its voice to defend its interests in agriculture and the agrifood sector in the negotiation of this deal.

We would be opposed to any agreement which allowed for the undermining of the jurisdiction of the Irish courts through an investor-state dispute settlement clause.

There are concerns with possible abuse of investor protection provisions and the lack of transparency surrounding arbitration processes. However, Fianna Fáil welcomes the recent European Commission proposal to lead the way in reforming the global investment regime into a public investment court system, which will operate like traditional courts.

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