Maureen O'Sullivan (Dublin Central, Independent)
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10. To ask the Minister for Jobs, Enterprise and Innovation her views on the lack of a democratic process surrounding the pending EU ratification on the CETA trade deal; the implications of the investor-state dispute mechanism for Ireland; her further views on the need to wait for the EU Court of Justice on the legality of the investment court system, ICS, before ratification by the Houses of the Oireachtas; and if she will make a statement on the matter. [14423/17]

Maureen O'Sullivan (Dublin Central, Independent)
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The question relates to CETA and the lack of a democratic process surrounding the pending EU ratification of the trade deal. It also relates to the implications of the investor court system and the need to wait for the European Court of Justice ruling on the legality of the ICS before ratification here or elsewhere.

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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On 15 January 2017, the European Parliament voted in favour of the provisional application of the EU-Canada Comprehensive Economic and Trade Agreement, better known as CETA. This is part of the democratic process as set out in the treaties for the approval of international trade agreements. Provisional application is a standard part of a trade agreement and allows those parts of the agreement for which the EU has competence to come into force. The provisions relating to investment protection and investment dispute settlement were excluded from the provisional application.

Ratification can now commence in member states according to their constitutional requirements. This is also part of the democratic process for ratification of the trade deal. The Dáil will be part of the final decision to ratify the agreement in our case. It is important to wait to see the benefits of the agreement come into being before it is put before the Dáil for ratification. Then we can have a fully informed debate based on facts and evidence. Ratification by the Dáil will not be sought in advance of any relevant proceedings at the European Court of Justice.

I support the provisional application of CETA so that firms may immediately benefit from the new business opportunities. My Department is already working with our agencies and business groups to ensure that firms can take advantage of the terms of this agreement. I will be leading a trade mission to Canada in the first half of this year to promote the opportunities provided by the agreement.

Maureen O'Sullivan (Dublin Central, Independent)
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I am not coming at this with an anti-trade agenda but with an agenda that there should be a right to trade without any recourse to these investor court systems. I take from what the Minister said that the investor court system seems to be gone completely. I ask her to clarify that because of concerns among members of parliament in many countries, MEPs, trade unions, NGOs and civil society about that particular system. It is considered an affront to democracy. The German judges expressed concerns that it did not even meet the minimum standards required for a judicial system in a democratic country, and the European association of judges took the same line.

The concerns of the NGOs and trade unions were that it was going to allow foreign companies to sue governments and so bypass legal jurisdiction. I take hope from what the Minister has said. It was allowing companies to sue governments on future imagined profits as it stood. The Ecuadorian Government chose not to renew a licence for an oil exploration company. The company took the country to court. The court found against the Ecuadorian Government and awarded the company €2.36 billion based on the profit that would have been made. I ask the Minister to clarify the investor aspect of it. There have been calls for a new chapter on that system. Where is that now?

Niall Collins (Limerick County, Fianna Fail)
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I have a quick comment on this. The Minister might be able to clarify this today but she can get back to me if not. Fianna Fáil is clear on where it stands on CETA. We support it and think the upside to the trade deal will be very beneficial to our country in the main.

People and groups are voicing concern and opposition to CETA and to aspects of the agreement. We had a briefing at the Joint Committee on Jobs, Enterprise and Innovation by some officials from the Minister's Department. I asked them to detail and outline, following the consultation exercise that they undertook with stakeholder groups, the level of opposition and concern that was expressed. The response from the Minister's officials was that it was minimal. If I am not incorrect, they said that no opposition was expressed to them. I have subsequently met with other groups which are expressing opposition, including farming representative groups and those types of organisation. I ask the Minister to double-check with her Department on the level of consultation that it has undertaken with various stakeholder groups and to gauge exactly what I just outlined there.

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I have seen letters in agreement with CETA and I have also seen other letters. I will double-check and get Deputy Collins the exact details. I hear exactly what the Deputy is saying. Substantive engagement took place, sector by sector, to identify Ireland's interests over the course of the negotiations. We looked at the elimination of virtually all tariffs between Ireland and Canada. We looked at the creation of new opportunities for farmers and agrifoods. As the Minister for Jobs, Enterprise and Innovation, I have to make sure that jobs are created throughout Ireland. Over 70% of our exports and half of our domestic economic activity is generated by foreign direct investment. We are trying to make sure that we seize the opportunities. I assure Deputy Collins that there will be a vote in Dáil Éireann. We want to see what benefits will accrue so that we can make an informed decision. I am looking forward to engaging with companies in Canada and Enterprise Ireland will be with me to ensure that we can grow companies. IDA Ireland will also be there to make sure that there is more investment into Ireland. We will then be able to come back and make a better-informed decision on what happens, and then we can vote in Dáil Éireann.

Maureen O'Sullivan (Dublin Central, Independent)
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I would also like to make a point about the Seanad's rejection of CETA, which is very significant. There are still concerns about the implications for jobs, particularly in small and medium enterprises, and about agriculture, particularly milk and beef prices. There is a danger of us being flooded by genetically modified foods. The people of Wallonia, who are very dependent on dairy and beef products, like us, have voted against this agreement five times. They wanted the Belgian Government to bring this to the European Court of Justice to see if this is legal under European law, as is their right under Article 218. There are concerns that, while there are chapters on labour and sustainable development, there is nothing on violation of those particular standards. The other concern is about future privatisation of public services and that CETA could open a floodgate for that to happen. I ask the Minister to clarify if we are going to wait for the European Court of Justice ruling before the vote is taken here.

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The majority of the provisions of CETA will be provisionally applied. Chapter 8 on investment shall only be provisionally applied in so far as it relates to foreign direct investment. Chapter 13 is about financial services and it shall not be provisionally applied in so far as it applies to the portfolio investment, protection of investment or investment dispute settlement. That was one of the major issues. The article on camcording in chapter 20 on intellectual property will not be provisionally applied. The articles on administrative proceedings, review and appeal in chapter 27, on transparency, shall not be provisionally applied. The article on investor protection in chapter 28 on exemptions will not be provisionally applied. That was a major issue. The provisional application of chapter 22 on trade and sustainable development, chapter 23 on trade and labour and chapter 24 on trade and the environment shall respect the allocation of competences between the Union and the member states.