Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I thank Senator Malcolm Byrne for raising this important topic and affording me the opportunity to factually address the House and contradict some of the misinformation that is circulating in relation to CETA. The EU's Comprehensive Economic and Trade Agreement with Canada is designed to benefit EU and Canadian companies through improved trade flows in support of increased employment for our citizens. The elimination of tariffs, reduced non-tariff barriers and simplified customs procedures that flow from CETA will make it easier and cheaper for Irish companies of all sizes to export to Canada and vice versa.

The agreement covers virtually every aspect of economic activity and provides new market opportunities in many sectors for Irish firms given the extensive bilateral business links between Ireland and Canada. Outside of Europe, the US and China, Canada is our largest indigenous export market. More than 400 Enterprise Ireland clients are doing business in the Canadian market, employing in excess of 6,000 people. Since the agreement was provisionally applied in September 2017, duties on 98% of products the EU trades with Canada have been removed. Furthermore, exports of Irish goods and services to Canada totalled approximately €3.9 billion in 2019. This was a 35% increase compared with 2016, which was the last full year prior to the provisional application of CETA.

CETA is delivering on the ground for our citizens. My Department and our enterprise agencies will continue to promote the benefits of the agreement for Irish-based enterprises. This increased trade along with wider trade performance help underpin the creation of quality, well-paid jobs. The benefits and opportunities will be especially valuable for small and medium enterprises, SMEs, given that trade barriers tend to disproportionately burden smaller firms which have fewer resources to overcome them compared with larger firms. The main benefits for Ireland in this agreement include the opening up of public procurement markets in the Canadian provinces giving Irish firms increased market access; unlimited tariff-free access for most of our important food goods; and a low beef import quota from Canada.

The full coming into force of CETA will see the implementation of the investment chapter of the agreement, including the mechanisms for resolution of disputes between investors and states, should they arise. The EU's new approach to investment protection, the investment court system, ICS, is contained in CETA and replaces the old investor-state settlement system, which has been included in more than 2,000 international investment treaties but is regarded as outdated.The new ICS provides greater transparency provisions, safeguards to prevent forum shopping, provisions for the swift dismissal of frivolous claims, a clear distinction between international law and domestic law, the avoidance of multiple and parallel proceedings in the ICS and national courts and the establishment of a permanent list of arbitrators.

Investment disputes can continue to be litigated before national courts with the ICS as an alternative single consistent mechanism where investors, be they Canadian or European, can seek redress if they so choose. Significantly, CETA introduces a precise and specific standard of fair and equitable treatment of investors and investment for specific limited grounds such as the case of the denial of justice or fundamental breach of due process or through targeted discrimination.

The Senator referred to the opinion of the ECJ in April 2019. The court held that the dispute settlement mechanism in the CETA is compatible with EU law. It complies with the principle of autonomy of EU law, as well as the exclusive jurisdiction of court for the interpretation of EU law and the Charter of Fundamental Rights, in particular the right of access to court and the right to an independent impartial tribunal under the charter.