Written answers

Thursday, 26 April 2018

Department of Jobs, Enterprise and Innovation

Trade Agreements

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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119. To ask the Minister for Jobs, Enterprise and Innovation the status of the trade agreement agreed in principle between the EU and Mexico; the offensive and defensive interests of Irish businesses and SMEs in this deal; the market access and import tariffs or duties removed by sector; the timeline for same; and the opportunities in public procurement in this regard. [18532/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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On the 21st April 2018, the EU and Mexico reached an agreement in principle on a new trade agreement that will be part of the broader modernised EU-Mexico Global Agreement. Modernisation of the trade part will provide for duty free trade on practically all trade in goods including in the Agricultural sector. The agreement also includes common sanitary and phytosanitary (food safety and animal and plant health) standards, good regulatory practice as well as sustainable development in labour and the environment.

The EU-Mexico trade deal together with the EU's other recent trade agreements with Canada, Japan and Singapore sends a powerful and positive message on global trade. Ireland already exports over €2 billion of goods and services to Mexico so this agreement offers the potential to grow that further through increased market access, reduced tariffs and administrative simplification for exporters.

There will be no custom duties on 98% of goods from the moment the agreement comes into force. For the remaining goods, custom duties will be removed over time or for a limited amount defined as a quota. The agreement will be of significant value to Ireland’s important Agri-food sector and, in particular, it will:

- provide preferential access for fresh and processed cheeses of a 0% tariff quota of 5,000 tonnes (currently taxed up to 45%) and for mature chesses of a 0% tariff quota of 20,000 tonnes (currently taxed up to 45%);

- secure a considerable volume for milk powder, which Ireland is a prominent exporter of, starting with a 0% tariff quota of 30,000 tonnes from entry into force, rising to 50,000 tonnes after 5 years (currently taxed up to 50%) and

- allow Ireland to increase its pork and poultry exports to Mexico, with duty-free trade for virtually all pork products (currently taxed up to 45%) and economically relevant poultry products (currently taxed up to 100%).

The agreement contains provisions in relation to customs and trade facilitation, which are aimed at reducing processing times at the border and making movement of goods cheaper, faster, more predictable and efficient. This includes streamlining customs procedures, setting common principles and providing for better cooperation and exchange of information between EU and Mexican custom authorities and substantial provisions on transparency to ensure that traders and the public have access to information on legislation, decisions or administrative policies.

Under the agreement, Mexico will also recognise product certification on industrial products carried out in the EU. This will make it easier for EU companies to prove they have complied with Mexican standards and regulations. Mexican exporters will still have to comply with the EU's strict standards and regulations, just as they do now.

The agreement will speed up trade while maintaining strong health and hygiene standards for food products. The agreement also contains an explicit reference to the precautionary principle that governs the parties' approach to the decision making. This means that, as already enshrined in the EU treaties, the EU can continue to keep products out of its market as long as there is no scientific certainty that they are safe.

While the value of Ireland’s services exports to Mexico in 2016 amounted to less than €1m, this agreement will make it easier for Ireland to access Mexico’s fast-growing services market. Under the agreement, Mexico will open up its public procurement market to Irish and EU companies more than it has to any other trading partner. Mexico has also committed itself to enter negotiations with Mexican States to allow EU firms to tender for contracts at State level by the time the agreement is signed. There are many exciting opportunities in Mexico for Irish businesses including manufacturing, automotive, engineering, telecommunications, ICT, aerospace, software and service and manufacturing technology.

In relation to SMEs, the agreement contains a dedicated chapter that requires the EU and Mexico to provide a website to assist SMEs to avail of the benefits of and provide dedicated information to SME’s on the Agreement. Contact points in the EU and Mexico will work together to take into account the specific needs of smaller businesses and identify ways they can take advantage of new opportunities in each market.

The agreement in principle contains the most important chapters agreed with the EU and Mexico continuing to work to resolve the remaining technical issues. The EU and Mexico hope to finalise the full legal text before the end of the year. The final text will be reviewed by lawyers from both parties, a process called “legal scrubbing”. After legal scrubbing and translation into all EU official languages, the agreement will be submitted for the approval of EU Member States and of the European Parliament before signature.

Further information and a detailed description of the agreement in principle is available on the EU Commission’s website at .

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