Bernard Durkan (Kildare North, Fine Gael)
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252. To ask the Minister for Jobs, Enterprise and Innovation if the Transatlantic Trade and Investment Partnership is a focus for discussion between the Europe Union, the United States of America and other countries; if assurances have been given to the effect that agriculture and industry here will not suffer as a result; and if she will make a statement on the matter. [12377/16]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The 13th round of Transatlantic Trade and Investment Partnership negotiations between the EU the US and took place from 25th – 29th April, 2016 in New York. Progress was made on the two texts on regulatory cooperation and good regulatory practices. Substantial progress was achieved on the SME chapter and on the provisions of Customs and Trade Facilitation which would simplify customs procedures and reduces fees and charges to the benefit of SMEs in particular. There was also progress in consolidating textual proposals on Sustainable Development, which includes labour and the environment, and on Investment. Extensive discussions also took place on public procurement. The parties also discussed regulatory cooperation in the nine industry sectors under consideration and the EU presented its first proposal for the pharmaceuticals sector. The parties also discussed mutual recognition agreements for professional services and significant progress was made on the consolidation of the text.

Both the EU and US are aiming to make substantial progress in 2016. A number of intersessional meetings between the parties will take place before the next full negotiation round, which will be scheduled before the summer break, most likely in July.

The proposed EU-US agreement is one of a number of new style trade agreements the EU is negotiating that not only covers tariffs, services and investment but also includes regulatory coherence and cooperation. An EU-US agreement would be the world’s largest bilateral trade and investment deal, and a successful conclusion is expected to benefit Ireland more than any other EU Member State. As Ireland continues to rely on external demand and international markets for sustainable growth and market access, regulatory cooperation and reduced tariffs are essential to grow our exports.

Owing to our position as a small open economy, Ireland’s enterprises are particularly well placed to take up opportunities to trade more easily with the US. An independent study commissioned by this Department, carried out by Copenhagen Economics, estimates that these benefits in Ireland will be proportionally greater than in the EU as a whole. It suggests a boost to GDP of 1.1%, growth in Irish exports of almost 4%, increases in investment of 1.5%, and an increase in real wages of 1.5%. It estimates somewhere between 5,000 and 10,000 additional export related jobs. The findings are backed up in an interim independent report contracted by the EU Commission, carried out by Ecorys Consultancy

() and published on 13th May 2016, which estimates that an EU-US free trade agreement would boost Irish GDP by 1.4 per cent.

The opportunities of an agreement will be especially valuable for SMEs, given that trade barriers tend to disproportionately burden smaller firms, which have fewer resources to overcome them than larger firms. In fact, the Copenhagen Economics study reported that an EU-US free trade agreement would have a more significant positive impact on SMEs than on other types of business. The final agreement will have an entire chapter exclusively dedicated to SMEs aimed at addressing those specific constraints that might otherwise limit SMEs taking full advantage of the improved EU-US trade agreement market access.

In relation to agriculture, Ireland, like other Member States, has some sensitivity in the agriculture sector. But we also have offensive interests for example in access to the US dairy market. As part of the Copenhagen Economics Study preparation, meetings were held with a range of stakeholders from the agri-sector. This study finds that EU-US trade agreement will see a likely increase to Irish agriculture exports by 2% to 3% or €230-€270 million relative to 2013. The study also underlined the sensitivity in the beef sector.

Ireland strongly supports these negotiations and is working to ensure that our interests, both offensive and defensive, are fully reflected in the texts of the negotiations. I look forward to continuing to work to ensure we achieve a comprehensive and balanced trade agreement that delivers real economic potential for our country and the EU without lessening of our high standards particularly regarding health, consumer rights and the environment.I look forward to continuing to ensure Ireland’s economic interests are both promoted and defended to the fullest extent possible.