Billy Kelleher (Cork North Central, Fianna Fail)
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126. To ask the Minister for Jobs, Enterprise and Innovation her views on a trade proposal by an organisation (details supplied) with respect to Brexit. [10174/19]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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International Trade Policy is a competence of the EU Commission under the EU Treaties and defined as the Common Commercial Policy (CCP). Under this architecture the Commission represents Ireland and other Member States at the WTO taking into account the needs of individual Member States and the collective good of the Union. As such, the EU is leading on all negotiations relating to Brexit.

As the Deputy will be fully aware, the EU and UK negotiators agreed in December 2018 the Withdrawal Agreement. This Agreement was the product of two years of negotiation taking into account the UK’s ‘red lines’ and the EU’s requirement to protect and support the single market and the Good Friday Agreement. It is unfortunate that the UK Parliament have been, to date, unable to pass the Withdrawal Agreement that would provide certainty and clarity as to the relationship between the UK, Ireland and the EU after March 29.

The Withdrawal Agreement provides the foundation stone to the creation of a new relationship between the EU and the UK and Ireland is fully engaged at every level within the EU regarding the negotiations. The final terms of the UK’s exit from the EU have yet to be determined and the EU continues to actively engage with all Member States, including Ireland, to achieve the best outcome possible for all Members notwithstanding the inevitable negative consequences of Brexit, once the precise terms of the UK’s exit are settled. As An Tánaiste and An Taoiseach have both said in recent days, Brexit is a lose, lose, lose scenario. Nonetheless, were the UK’s intentions for the future partnership to evolve further, the EU has made clear that the Union is prepared to reconsider our offer and adjust the content and level of ambition of the Political Declaration.

The Future Trading Relationship phase of negotiations, post March 29, is designed to ameliorate as much as possible the negative impacts on trade and employment that will arise from Brexit. All obligations and benefits of WTO rules will be considered in that context, but those considerations cannot be pre-determined at this time.

Specifically, in relation to Article XXI of GATT, there are a limited number of instances where article XXI has been invoked, most recently by the United States to enable the application of tariffs on Steel and Aluminium products imported into the US, but more usually at time of conflict, war, and so on. This action by the US has been challenged by the European Union and several other WTO members and is currently being pursued under the Dispute Settlement Framework of the WTO. As with any trade related action, the use of Article XXI, which would have to be by the EU, would be open to challenge by other WTO members, if any so chose. It could be argued that for the use of Article XXI to be effective the UK would have to adopt a similar approach.

I don't believe it is helpful for us to speculate on the use of such exceptional mechanisms, when we have concrete, worthwhile, proposals before us. The Withdrawal Agreement provides a solid legal framework for the UK to depart the European Union through the commencement of the transition phase, followed by negotiations on the Future Trading Relationship. The Government has repeatedly maintained that the best and only way to ensure an orderly withdrawal and protect the Good Friday Agreement is to ratify the Withdrawal Agreement and this remains our priority.

Finally, I might note that the Government has, this week, brought the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2019 (the ‘Omnibus Bill’) to second stage in the Dail. This piece of legislation allows the Government to amend a number of domestic laws in order to manage the negative sectoral impacts in the event the UK leaves the EU without reaching agreement on their withdrawal. Additionally, the Government on both a domestic and international level are fully engaged with preparing for Brexit. Along with our EU colleagues, our focus is on ensuring that the UK passes the Withdrawal Agreement which provides the clearest and legally unambiguous platform in which to begin talks on the future relationship, whilst, at the same time, ensuring that our most vulnerable sectors are protected from the worst impacts of Brexit. In that regard, my Department has been at the forefront of delivering, with our Enterprise Agencies, a range of measures aimed at assisting businesses navigate the economic turbulence attendant on Brexit.