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Dáil Éireann debate -
Wednesday, 20 May 1959

Vol. 175 No. 2

Ceisteanna—Questions. Oral Answers. - Free Trade Area: Swedish Proposals.

1.

asked the Minister for Industry and Commerce if he will state this country's attitude to the Swedish proposals for a smaller free trade area.

2.

asked the Minister for Industry and Commerce if he has noted that fresh discussions relative to the free trade area have been initiated by Sweden to cover the United Kingdom, the Scandinavian countries, Switzerland, Austria and Portugal; and whether Ireland is privy to such consultations so that no agreement may be reached by this block of seven nations without our interests being considered.

With the permission of the Ceann Comhairle, I propose to take Questions 1 and 2 together.

The aim of the discussions on the establishment of a European Free Trade Area, which were conducted under the auspices of the OEEC, was to secure a multilateral agreement for associating the other OEEC countries, including Ireland, with the European Economic Community.

The Government participated fully in these discussions, firstly because Ireland is a member of OEEC and also because we considered that Ireland should support the efforts being made to prevent the trade divisions which threatened to arise in Europe if the European Economic Community were not associated with the other OEEC countries on a basis acceptable to all seventeen members.

Although the negotations for the establishment of a European Free Trade Area have been suspended, it cannot be said that the idea of a multilateral arrangement between the countries concerned has yet been abandoned. An arrangement on those lines would be more favourable from the point of view of this country than any alternative likely to emerge, such as the creation of separate trading blocs in Western Europe. Accordingly, our attitude since the suspension of the Paris negotiations has been governed by a desire not to engage in any action which might prejudice work towards the eventual conclusion of a multilateral agreement between all OEEC countries.

Among developments which have taken place since the suspension of the Free Trade Area negotiations last December are the discussions between a number of other countries (including Britain) outside the European Economic Community on the possibility of establishing a free trade area comprising certain countries outside the Community. These discussions were not carried out under the auspices of OEEC and the Government have insufficient information on the progress of the discussions on the proposals reported to have been put forward by Swedish interests and on the attitude of Governments towards them. One of the purposes of my forthcoming talk with the British Paymaster General is to clarify the status of these proposals and to discuss their possible effects on future trading relationships between the two countries.

Will the Minister say whether this country was invited to participate in the discussions, apparently initiated by the Swedish Government, or whether it was intimated to the conveners of the talks that we did not desire to participate?

I have stated that our attitude in relation to these talks has been prompted by the conclusion that the best interests of this country are to be served by a multilateral agreement covering all O.E.E.C. countries. We have not participated in any action which might prejudice or delay the emergence of such an agreement.

Arising out of what the Minister has now said, the British Paymaster-General has been intimating that so far as Britain is concerned, she desires an inclusive trade agreement covering all of Europe, but, presumably, the British participation in the Swedish talks has not been in any way with the object of frustrating a more comprehensive agreement. I take it therefore that equally our participation would have nothing to do with frustrating the possibility of arriving at a comprehensive settlement between all O.E.E.C. countries. I take it these countries sent representatives as a result of an invitation—they did not all just arrive there out of some sort of feeling that they would all meet. I take it invitations were issued. Did we get an invitation or an intimation of the meeting beforehand?

I do not know if invitations were issued; certainly, we received no invitation. There is considerable doubt as to the status of these proposals. It is not yet clear that they have been considered at Cabinet level by any of the countries concerned.

Have the Paris talks been suspended indefinitely or is there an arrangement to reconvene the meeting?

In December last, the arrangement was to reconvene the Council of O.E.E.C. in January. That meeting did not take place and there is no information as to when it may take place.

Does the Minister not consider, now that the Common Market is in existence, that the multilateral agreement to which he referred will more than likely arise out of the amalgamation of smaller agreements rather than that those outside the Common Market will all join in a multilateral agreement at a later stage?

I should not like to express a view on that at this stage.

Will the Minister not agree that it is a view that should be kept in mind, at any rate?

Could the Minister say if he has any information as to whether the discussions initiated by the Swedish Government, and now taking place, are confined to free trade in the industrial field and whether they include free trade arrangements in which agriculture will also be included?

No definitive statement on the proposals has been published, so far as I know, but the information available to us suggests they relate only to the industrial field.

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