David Stanton (Cork East, Fine Gael)
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Question 73: To ask the Minister for Agriculture, Fisheries and Food the details of the proposed World Trade Organisation import tariff cuts on the main farm sectors; if her Department has conducted research and calculation on the impact she expects these proposed cuts to have on farming here; and if she will make a statement on the matter. [13009/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The level of tariff reduction commitments to be applied in the next WTO Round are still the subject of the ongoing negotiations. These tariff reduction commitments are only one of a significant number of outstanding issues in these negotiations. The Chair of the WTO Agriculture Committee issued his latest draft agriculture modalities paper in February 2008. This paper outlines the methodology for tariff reductions and the range of tariff reductions which are currently under consideration. The tariff reduction formula provides for four bands of tariffs grouping the products with the lowest current tariffs in the bottom band and those with the highest current tariffs in the top band. The formula also provides for higher reductions for products in the top tariff band, that is the products with the highest current tariffs.

The Chair's text proposes tariff reductions of between 66% and 73% for tariff lines in the highest tariff band. In terms of the EU tariff structure the highest tariff band includes beef, butter and some sheep tariff lines. If this level of tariff reduction were applied in full it would represent a huge challenge on the EU market for EU production of these products which are competing with third country imports.

The tariff reduction formula is one element of the agriculture market access negotiations. The Chair's text also provides for the designation by each WTO member country of a certain number of tariff lines as so called 'sensitive products'. The Chair states the number of lines which could be designated as sensitive should be in the range of 4-6% of total tariff lines. This designation provides for a reduction of up to two thirds from the tariff reduction which would normally apply under the proposed tariff reduction formula. However sensitive product designation also involves the creation of new Tariff Rate Quotas (TRQs). These new TRQs will be calculated for each product designated as sensitive on the basis of a percentage of domestic consumption of those products. The detailed methodology and level of these TRQs is also still the subject of ongoing negotiation, and the outcome of these discussions will therefore have a strong influence on any decision to declare sensitive products status for a particular product.

As I have outlined, there are a significant number of outstanding issues which are the subject of the ongoing negotiations in relation to import tariffs. The manner in which sensitive products are dealt with will be crucial to the access debate.

The outcome of this facet of the negotiations represents a key priority for me. I fully recognize the importance of the EU market for Irish agricultural exports and I will therefore be seeking to ensure that the outcome to these negotiations does not undermine this crucial and key market for Irish products.