John Halligan (Waterford, Independent) | Oireachtas source

I thank the Deputies for their contributions, which were worthwhile. I also thank them for offering their best wishes to the Minister for Enterprise and Innovation, Deputy Fitzgerald, and me on our appointments.

It is vital to maintain our historical openness and trade in the face of changing circumstances in the international environment over the past year. If the increasing uncertainty and market swings created by Brexit and the growing protectionist atmosphere in many countries are to be effectively countered, it can only be beneficial to have free and fair trade both for Ireland and the rest of the world. In that context, we have concentrated our efforts on the implementation of the new-generation free-trade agreements, which are comprehensive in nature and break down the non-tariff barriers affecting our key exports.

Let me speak about the most recent of the trade deals that have been concluded and which the Government believes will bring significant benefits to this country, namely, the EU-Canada agreement. In February 2017, the European Parliament gave its consent to the provisional application of the EU-Canada Comprehensive Economic Trade Agreement or, as it is commonly known, CETA. Provisional application is provided for in the EU free trade agreements. This means that those aspects in respect of which the EU has full competence may be applied immediately once the agreement comes into force. It is an important mechanism that allows companies and consumers to benefit at a practical level from a trade agreement at an early stage. Most important, this includes the reduction in tariffs on our exports. Over 99% of tariffs between the EU and Canada will eventually be removed. These are facts.

With CETA, Irish companies will receive the best treatment that Canada has offered any trading partner, thus levelling the playing field on the Canadian market for Irish and other EU companies. In May of this year, 25 Irish companies participated in an Enterprise Ireland trade mission to Canada in order to target the new opportunities arising from CETA. One of the main benefits will be the opening up of public procurement markets in the Canadian provinces, giving Irish firms increased access to Canadian public sector purchasing.

Ireland also gains unlimited tariff-free access for most of our important food exports, particularly opening up significant opportunities for the Irish dairy industry. Ireland successfully campaigned for strong protections for its beef industry through restrictive quotas for Canadian beef entering the EU. Ireland has always worked and will always work for a good outcome that respects our agriculture sector.

Irish firms will also benefit from the recognition of product standards and certification, thus saving on what is known as double testing on both sides of the Atlantic. This is of particular benefit to smaller companies for which paying twice for the same test can be prohibitive, as we all know. These are some of the tangible benefits of CETA in addition to providing new market opportunities in some sectors for Irish firms. Following Canada's internal procedures for ratification, we hope we can begin to apply CETA provisionally in the coming months.

The issues that have proved controversial in regard to the proposed investor court system will not form part of the provisional application. In order for the agreement to come fully into force, each member state and regional parliament must ratify it. There is no time limit to conclude this process. As the Minister, Deputy Fitzgerald, has said, the Oireachtas will be part of the decision on ratification, as necessary, in due course.

Some views have been expressed that the provisions relating to investment protection and the investment court system may give rise to a constitutional crisis. It is important to recall that any such court or tribunal would arbitrate on claims for damages or injury due to unfair or discriminatory treatment of a firm from one country by the actions of a government in another. There is no question of such a tribunal overruling Irish courts or overturning any legislation passed by the Oireachtas. We want to be quite clear about that. The Government has received competent and confident legal advice that confirms that the European Commission's proposal for an investment court system, which will effectively involve a dispute-resolution process, will not give rise to constitutional implications.

The EU-Japan agreement was mentioned. One of the most exciting recent developments is the strong process in respect of which the EU is engaged in finalising talks with Japan. There are hopes for a political agreement on a trade deal this year. Representatives from Enterprise Ireland and I have visited Japan. Together, the EU and Japan account for more than one third of the world's GDP. In addition to the agreement with Canada, an agreement with Japan would send a powerful and positive message on global trade and the importance of continuing to liberalise markets. The opportunities for Ireland would also be substantial. Ireland exports significant amounts of goods and services to Japan. These amounted to €6.6 billion in 2016. Japan is the largest source of foreign direct investment in Ireland from Asia. There are more than 50 Japanese companies with a presence in Ireland, 28 of which are IDA Ireland client companies, employing approximately 4,000 people.

The EU has restarted talks with what are known as Mercosur countries in South America, not to mention the ongoing negotiations to upgrade our trading relationships with Mexico, Chile, the Philippines, Indonesia, Turkey, Singapore and, of course, China. There are also plans to open negotiations with Australia and New Zealand in the coming months. In addition to having bilateral EU trade agreements, Ireland has benefited from sectoral agreements such as the international technological agreement and the expected conclusion of the agreement on environmental goods.

Let me touch very briefly on Brexit and the eurozone. Articulating our interests and exercising our influence at EU level are central to Ireland's success in engaging in negotiations, and will take on even greater prominence when the UK leaves the EU. Specifically on Brexit, the Government aims to preserve the fullest market access to the UK and the fullest requirements from the UK to uphold the obligation of market access. Under any future trade deal between the EU and UK, the Government will ensure we develop a robust evidence-base, comprehensively prepare for negotiations and deliver the best possible outcome for Ireland.

In my Department, we are prioritising our response to the effects of Brexit on Irish trade through an arrangement and agreement with Enterprise Ireland, IDA Ireland and other stakeholders. For example, Enterprise Ireland will double the funding available to support clients to either enter or scale up their activities in the eurozone. This is under a range of existing programmes. These include mentoring programmes, market access grants, fair trade participation, the appointment of key eurozone managers, setting up local offices, business innovation supports and an enhanced programme of trade visits and trade events. Market study visits and onward buyer visits to key targeted eurozone countries and others will be undertaken shortly. Over 40 international Minister-led trade events have been planned for this year, with a particular focus on market diversification. Some 145 trade-promotion events are scheduled in Ireland and overseas this year. Over the past six months, many Ministers have been right across Europe and Asia to promote Ireland and its trade.

The Government has allocated €3 million of this year's budget to boost resources in State agencies to deal with the impact of Brexit. This will enable the recruitment of ten extra staff by IDA Ireland and an additional 39 staff by Enterprise Ireland for its in-market teams. New company supports and tools are also being made available, including a new digital marketing campaign, targeting buyers in key sectors and euroszone markets, and a Brexit SME scorecard for Irish companies to address their exposure to Brexit.

The overall objective is to assist Irish exporters to increase exports in the eurozone countries by 50% in 2020 to mitigate any barriers to Irish trade with the UK that may arise from Brexit. We believe this strategy will drive one of the most significant shifts to date in the footprint of Irish exports to the eurozone.

I am confident we in government are doing everything we can to respond strongly, in both the short term and the long term, to the impact of Brexit. I will be very brief on this. Some Deputies mentioned multinational companies and foreign direct investment, FDI. We should be very careful as we enter the next five, ten or 15 years in a very competitive worldwide economy and we have to do everything we possibly can. I completely agree with what has been said on the other side of the Chamber that we must make sure to bring as many FDI investors and multinational companies into Ireland who, right now as Brexit nears and even while the referendum was ongoing in England, showed and are showing confidence by investing in the Irish market and creating jobs. We would do well to remember that. We must think very carefully of what is happening right across Europe, particularly with regard to the 12.5% corporation tax, where there are some attempting to bring it down lower. It would be a disaster for us to touch the corporation tax.

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