Michael Creed (Cork North West, Fine Gael) | Oireachtas source

Free trade agreements are very important to Ireland, given our status as a small, open exporting economy. The negotiation of access to new markets historically has been a big driver of economic development, particularly in the food sector. I believe that this will continue to be the case in the future, and will be crucial to the achievement of the objectives outlined in Food Wise 2025.

Canada is a sizeable market with high purchasing power and is the most developed economy with which the EU has negotiated a free trade agreement so far. The Comprehensive Economic and Trade Agreement, CETA, with Canada will restore the level playing field for European businesses in Canada in comparison to Canada’s North American Free Trade Agreement partners, who have benefitted from preferential treatment in Canada since 1994.

In relation to seafood, I am satisfied that CETA represents an overall balanced agreement.  Both the EU and Canada will fully eliminate all tariffs on seafood products. Some 76.4% of Canada’s imports from the EU already enjoy a most favoured nation tariff of 0%, and Canada agreed to eliminate the remaining tariffs upon entry into force of CETA. The EU agreed to eliminate 95.5% of its tariffs on these products upon entry into force of CETA and 4.5% of the tariffs within three, five or seven years.

In 2016, Ireland exported €4.2 million worth of seafood to Canada, while we imported €2.5 million.  With the elimination of tariffs, there is an opportunity for Ireland’s seafood producers to further develop exports to Canada.

 In relation to lobster, I understand that almost all lobster caught by Ireland’s inshore fishermen are exported to EU markets.  The market price is thus likely to continue to be determined by EU markets.  I understand that buyers recognise lobster of EU origin as a separate and higher-value seafood product than Canadian or US lobster.  CETA is unlikely to affect this price differential.

In relation to scallop, I understand that prices vary from one year to the next depending on world production.  World demand has been growing in recent years, particularly in Asia, and that growth has been forecast to continue.  In those circumstances, market prices for scallop should remain healthy.

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