Written answers

Thursday, 9 March 2017

Department of Agriculture, Food and the Marine

Trade Agreements

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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281. To ask the Minister for Agriculture, Food and the Marine his views on the latest European Commission study carried out by a company (details supplied) and the findings that trade agreements can help increase exports and create jobs in the EU agri food sector; and if he will make a statement on the matter. [12610/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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As a small open economy, Ireland supports trade liberalisation and recognises the benefits of trade agreements with third countries which can potentially give rise to increased exports and job creation. However such agreements must be balanced and must serve both our offensive and defensive interests. This does not, of course, obviate the need to have regard to the potential impact of particular trade deals on sensitive sectors such as the beef sector.

Nonetheless I  welcome the Commission’s latest study particularly as it takes in a broad range of examples. It used the EU trade agreements with Mexico ("first generation" trade agreement), South Korea (new generation Deep and Comprehensive Trade Agreement DCFTA) and Switzerland (specific sectorial agreements) and this gives a balanced overview of such agreements.

The study shows that the agreements contributed to increased trade in both directions, with increased EU exports and increased imports of products from these three countries, giving EU consumers and business greater access to agri-food products. Importantly, it suggests that these increased imports have little impact on domestic EU production. Instead, they reflect mainly a replacement of imports from other third countries or an increase in EU consumption.

The study underlines the importance of closely following the trade negotiations of the EU's main competitors to make sure that the EU does not fall behind in access conditions to important markets for agri-food products. It also shows that more recently, ambitious agreements such as the EU-Korea trade deal, which entered into force in 2011, have a higher positive impact than older and less comprehensive agreements like the 2000 EU-Mexico agreement. This is a sign of the increasing quality and effectiveness of EU trade agreements in terms of removing barriers and of the success of the sector in improving competitiveness.

The study also emphasises the importance of EU promotion and information campaigns in helping EU exporters access new markets and grow their businesses in existing markets. The pursuit and development of new markets for Irish agri-food exports is of course an ongoing and central component of the strategic development of the agri-food sector, as evidenced by its placement right at the centre of Food Wise 2025, the industry’s strategy for development over the coming decade. Indeed, this is all the more relevant after the UK’s decision to leave the EU, which presents significant new challenges for the agri-food sector in particular.

Food Wise 2025 outlines the huge potential for growth in agri-food exports to new and emerging markets, particularly in Asia, Africa and the Gulf region. This is where our efforts will be focused for the foreseeable future, particularly given the need to diversify our markets and to reduce our reliance on traditional destinations such as the UK.

Overall this study illustrates the potential for European agriculture products to increase exports even within the existing scope of the trade agreements. The additional export demand enhanced by trade agreements could translate into an important source of growth, jobs and value added for the Irish and European agricultural and food sectors.

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