Dáil debates

Wednesday, 10 July 2019

EU-Mercosur Trade Agreement: Motion [Private Members]

 

3:15 pm

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I move amendment No. 1:

To delete all words after “Dáil Éireann:” and substitute the following:

"notes:— the announcement by the European Commission on 28th June, 2019, of an agreement in principle on an EU-Mercosur Trade Agreement;

— the very genuine concerns expressed by our farming community in relation to the beef and other agricultural tariff rate quota proposals in the deal particularly given the serious challenges already facing this sector due to Brexit;

— that as a small, open, export-led economy, Ireland very much supports balanced and sustainable international trade; and

— the positive elements in the Agreement for Ireland including the significant benefits for Irish exporters in sectors such as business services, chemicals, the drinks industry, machinery, medical devices, and the dairy industry with a reduction or elimination of tariffs and barriers to trade for these sectors;further notes that:— the Agreement includes a detailed chapter on Sustainable Development Goals and recognises the urgent need for action on climate change;

— the Agreement aligns with the Paris Agreement commitments in relation to deforestation and re-forestation of some 12 million hectares, as a part of ensuring that Mercosur, including Brazil, will have to effectively implement the Paris Agreement as part of this deal; and

— civil society organisations will be given an explicit role in overviewing the implementation of the Agreement and to flag any environmental or labour concerns;recognises that:— it will take approximately two years before the final text of this Agreement is available; and

— the ratification process will involve the European Council, the European Parliament and member state national parliaments, including Dáil Éireann; andagrees that a comprehensive, independent, economic and sustainability assessment will be carried out on the EU-Mercosur Trade Agreement, which will ensure that Government makes a fully informed decision when deciding on the position to take when the ratification process on this deal commences in approximately two years' time."

I acknowledge the farmers in the Public Gallery. At the outset of this debate, it is important to acknowledge first and foremost just how vital international trade deals are for this country. Last year, we exported €316 billion worth of goods and services all around the world. The fact is our exports have increased by 74% since 2013 and have played a huge role in the remarkable recovery in our economy over that period so let us be clear and honest here today. As an island nation on the edge of Europe, Ireland has been a major beneficiary of the ability to trade internationally and of our membership of the EU. Free trade has transformed this country from the isolated and impoverished state we were in the 1960s. Many in this House are rightly critical of the protectionist policies that are currently being pursued in the UK in terms of Brexit and by the current Administration in the US.

It is ironic that some of those same people are the first to dismiss an international trade agreement which opens up access to a market of 265 million consumers without giving it any level of detailed scrutiny. As a small, open, export-led economy, we depend on balanced international trade. The key word is “balance”. The Government will go through this agreement in minute detail and see if it strikes the right balance for Ireland.

We also need to acknowledge there are positives in this agreement with significant benefits for Irish exporters. In 2018 alone, Ireland exported almost €2 billion worth of goods and services to the Mercosur region. Our trade with the region has grown by one fifth between 2010 and 2016. This agreement will allow Irish exporters to expand faster and take advantage of new opportunities. In this regard, analysis by my Department estimates a potential doubling of annual goods and services exports from Ireland is possible over the period to 2030.

The deal ensures Irish whiskey and Irish cream liqueur are protected under the EU’s geographical indication, Gl, scheme. It is also important to point out the special provisions for SMEs in the agreement. There are positives for the dairy sector with tariffs on 45,000 tonnes of product including cheese, milk powder and infant formula moving from approximately 19% to zero tariff over a ten-year period presenting significant opportunities for the sector. It is important these benefits from the agreement are acknowledged.

However, this deal is not perfect. I recognise the genuine concerns expressed by our farming community about Mercosur. These concerns are not just about beef but also about our poultry sector and pig farmers. I am from a rural community and live on a farm. I have listened to some Members in the House over the past few days who are happy to jump on a bandwagon to score a cheap political point. The truth, however, is that some of them would not know a bee from a bull’s foot or the difference between a bull and a bullock.

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