Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

7. To ask the Minister for Agriculture, Food and the Marine his views on the current trade negotiations between the USA and EU and the possible industrialisation of agricultural production. [48349/13]

Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

This question relates to the trade negotiations recently commenced between the USA and EU on the opening up of trade agreements and the control by three companies of the vast majority of seed production in the world.

It seems that these trade negotiations are opening up the potential for the further industrialisation and consolidation of the entire agrifood sector and all business. What is the view of the Minister and his departmental officials on this and how do they see it developing?

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The objectives of the negotiations with the United States for a transatlantic trade and investment partnership are to eliminate tariffs, to solve existing regulatory barriers and to work to avoid the imposition of regulatory barriers in the future.

As regards market access, the US is a key market for Ireland in the agrifood sector. It is the fourth most important country destination for our exports after the United Kingdom, France and Germany. Irish exports of agrifood and beverages to the US were valued at €518 million in 2012, having grown from €406 million in 2010 to €478 million in 2011, a 28% rise in two years. We imported €192 million in agricultural products from US in 2012, comprising mainly animal foodstuffs at €99 million, food preparations valued at €28 million, live animals valued at €15 million, fruit and vegetables at €13 million and beverages, including wine, at €11.6 million. In this context, the opening of trade negotiations provides significant opportunities for the Irish agrifood sector to increase its access to the US market. There are also advantages to be gained in terms of possible reductions in tariffs on the products we import.

The negotiations will also facilitate the elimination of a series of regulatory barriers and irritants to current trade. These include the system employed by the US for management of import licences in the dairy sector and the dairy import assessment charge applied by the US to imports of dairy products from the EU.

Of course Ireland also has defensive interests. I will be monitoring the negotiations closely to ensure that, for example, any additional market access granted to the US does not impact on sectors which are sensitive for Ireland, notably the beef sector.

Additional information not given on the floor of the House

On 4 November, I welcomed the decision by the United States Department of Agriculture to lift the "BSE Rule", which was announced on 1 November 2013. This ban on the importation of beef from the European Union had been in place since 1997 andits ending was one of my priorities when I visited the US last year where I pushed the matter strongly with US Department of Agriculture Secretary of State Tom Vilsack and in meetings with US Senators.

The publication of the new regulation is a critical first step in accessing the US market and my Department has been preparing for the event for some time with officials working to address specific veterinary requirements demanded by the US. Last week one of my Department's senior officials visited Washington and held high level meetings with USDA officials with a view to advancingthe various technical requirements to ensure commencement of the trade at the earliest possible date.

As regards the impact of an EU-US agreement on the broader EU, I do not believe there is a risk that it will lead to the industrialisation of EU agricultural production. The EU model of agriculture, based on family farms, is still very much at the core of EU agricultural policy. This was again reaffirmed by the Commissioner and EU Council of Agriculture Ministers at the informal meeting of agriculture Ministers in Vilnius at the beginning of September.

Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State. There is no doubt that the agreement will provide some short-term gains in opening up further export opportunities for the Irish agrifood business. The Minister of State mentioned in his reply that there are structures in the negotiations about dealing with regulatory problems and barriers to trade. Part of these negotiations is a secret committee that will review issues and allow for dispute resolution to take place outside of the normal procedures within a member state, including courts and so on. That will lead to the further consolidation of the agrifood business and all businesses, will lead to decisions being made in secret and so countries will not be able to participate or have a role in defending, which is a very worrying situation. When we see the seed industry being consolidated into a small number of hands, we could see this expanding into the wider agrifood business as well. There should be a departmental view on this in respect of the negotiations.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Department will monitor this an ongoing basis. Our exports are certainly a priority. We rely so much on agriculture and the food industry for jobs. I accept the Deputy's point that we need to monitor this on an ongoing basis, and I certainly will take that message back as clearly as I can.

Mick Wallace (Wexford, Independent)
Link to this: Individually | In context | Oireachtas source

The purpose of this agreement is to remove the regulatory differences between the US and Europe. The Minister of State is saying that he and his Department will monitor the situation, but if this agreement comes into effect, they will not have the power to be doing much monitoring of it. They will be watching things happen and they will not have much control over them. It is pretty frightening to see what this agreement could amount to, and it will give big business a right to sue governments which have the audacity to defend their citizens in many ways. This is a really dangerous agreement and there will be a panel of corporate lawyers in a position to overrule parliament and destroy our legal protections. That is being done through a mechanism called investor-state dispute settlement. It has already been used in other parts of the world, and it completely undermines and kills regulations that protect people and the planet.

Citizens and communities affected by these decisions will have no legal standing, and this will be an erosion of democracy. It could have huge implications for agriculture here.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I take the point the Deputy is making, but we have some very good companies here in Ireland, such as Kerry Group and Dairygold, which are also very big and well able to fight their own corner. We have to look at the overall context of what Ireland is doing and what is best for Ireland. I certainly believe that no stone will be left unturned in any negotiations or agreement which might affect food businesses, whether they are big or small. I am confident that any negotiations will be done for the benefit of this country.